Issue - meetings

It was noted that a mistake had been made on the agenda front sheet, and this was not a decision item. 

The Executive Director (Corporate Services) reported that the Council would be required to pay over £200 million to the government on 28 March 2012 for exiting the current housing finance system. Among other finance options, the Council could issue a bond through retail, public or private placements. The Executive Director detailed the advantages of these, including the low interest charge of approximately 0.8% above gilt rates.

Alternatively, the Public Works Loans Board (PWLB) offered a ready supply of loan finance to Local Authorities, and currently charged 1.0-1.2% above the prevailing gilt rate. However the PWLB was now making specific provision for Local Authorities requiring loans to fund the HRA settlement. Loans raised for this purpose would therefore be charged at a lower premium, likely to be 0.2% above the prevailing gilt rate.

Following this change in Government policy, the Treasury Management Strategy was being presented to Council in February 2012 to coincide with the 30-year Business Plan due to be formally reported to Cabinet that month.

The Executive Director presented a graph which reflected the PWLB interest rates since the beginning of June 2011. These had risen in July from 5.1%, before falling to below 4.4% earlier in November 2011. Members noted that every 0.1% made a difference of approximately £200,000.

Parish Council Investments

The Head of Accountancy reported that a consultation process was underway, involving 12 Parish Councils, which were the largest and therefore regarded as most appropriate for the initial consultation. The results from this would later inform an options paper.

Members discussed the levels of enthusiasm for the scheme, and debated the option of extending this consultation to include some of the smaller Parishes. It was agreed that this option could be discussed further once the initial consultation was complete.

The Finance and Staffing Portfolio Holder NOTED the report.