Issue - meetings

Cabinet

RECOMMENDED THAT COUNCIL

consider the report and, if satisfied, approve the updated Treasury Management Strategy attached at Appendix A to the report which sets out the policy framework for the Council’s treasury management activity, including (i) the Treasury Management Policy Statement, (ii) Minimum Revenue Provision Policy and (ii) Treasury Indicators.

Council 

Agreed           to approve the updated Treasury Management Strategy attached at Appendix A to the report which sets out the policy framework for the Council’s treasury management activity, including (i) the Treasury Management Policy Statement, (ii) Minimum Revenue Provision Policy and (iii) Treasury Indicators.

Councillor John Williams presented this report on the annual review of the Treasury Management Strategy that complies with the Chartered Institute of Public Finance and Accountancy revised Prudential Code for Capital Finance in Local Authorities. He explained that amendments to the Strategy were marked in red in the report. It was noted that the minimum yield expectation remained at 2%, which would be reviewed due to possible increases in inflation.

Councillor Tom Bygott noted that the report expected inflation to peak at 6% in April 2022 and then decline. He asked how quickly the administration were expecting rates to subside and what would be the impact on the Strategy if it did not. Councillor John Williams explained that the Government was responsible for the country’s inflation rate. He stated that the yield expectation was currently at 2% but that this would be reviewed daily in light of increases in inflation.

Councillor Heather Williams expressed concern regarding the increase in the rate of borrowing to fund the Strategy which she suggested was unsustainable. Councillor Deborah Roberts shared Councillor Heather Williams concerns and asked if the increase proved to be unsustainable what was the Council’s plan B to resolve this. Councillor John Williams replied that the majority of borrowing was the £205m from public loans board in order to fund Council housing.

Councillor John Williams proposed and Councillor Brian Milnes seconded the recommendation in the report. A vote was taken and were cast as follows:

In favour (19):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Dr Martin Cahn, Dr Claire Daunton, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Geoff Harvey, Dr Tumi Hawkins, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, John Williams and Eileen Wilson.

Against (9):

Councillors Ruth Betson, Dr Shrobona Bhattacharya, Tom Bygott, Graham Cone, Sue Ellington, Mark Howell, Bunty Waters, Heather Williams and Dr Richard Williams.

Abstain (1):

Councillor Gavin Clayton.

Council 

Agreed          to approve the updated Treasury Management Strategy attached at Appendix A to the report which sets out the policy framework for the Council’s treasury management activity, including (i) the Treasury Management Policy Statement, (ii) Minimum Revenue Provision Policy and (iii) Treasury Indicators.

Cabinet:

Recommended to Council the updated Treasury Management Strategy attached at Appendix A to the report which sets the policy framework for the Council’s treasury management activity, including (i) the Treasury Management Policy Statement, (ii) Minimum Revenue Provision Policy and (ii) Treasury Indicators.

This is a recommendation to Council, and not subject to call-in.

Cabinet received the Treasury Management Strategy. Councillor John Williams, Lead Cabinet Member for Finance, introduced the report, noting the updated strategy and the returns of the Council’s investments.

Councillor Heather Williams wanted to confirm if the yield of each investment would be reviewed individually or combined with all of the Council’s investments. Councillor John Williams responded that all investments would be judged on their individual returns.

Councillor Bridget Smith, Leader of the Council, closed the discussion, and Cabinet:

Recommended to Council the updated Treasury Management Strategy attached at Appendix A to the report which sets the policy framework for the Council’s treasury management activity, including (i) the Treasury Management Policy Statement, (ii) Minimum Revenue Provision Policy and (ii) Treasury Indicators.