Issue - meetings

Cabinet

Recommended that Council

Consider the report and, if satisfied, to approve 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.

Council 

Agreed           to approve 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 (iii) Treasury indicators.

Councillor John Williams presented this report, which invited Council to agree the updated Treasury Management Strategy. It was noted that the Strategy had been affected by the recent increase in inflation. Councillor John Williams explained that the Council had decided to add three overseas banks on the list of possible providers for the authority. Councillor Tom Bygott reminded Council of the impact on other local authorities’ finances by the collapse of the Icelandic banks and asked for assurance that it was prudent for the Council to invest with overseas banks. Councillor John Williams replied that overseas banks were being considered, as they were offering a better return than the  domestic banks. He assured Council that the administration would ensure that any investments made would be with banks that would not default.

Councillor Sue Ellington expressed concern at the level of external borrowing. Councillor John Williams explained that the largest loan was from the Public Work Loans Board and that other borrowing was to fund commercial investments that brought the Council income well in excess of the interest charged on the loan. Councillor Heather Williams asked whether it was prudent to increase the levelling of borrowing in the current financial climate. Councillor John Williams reiterated that Ermine Street Housing and commercial investments were bringing in much needed income to the Council. Councillor Mark Howell thanked all those involved in the success of Ermine Street 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 (28):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Ariel Cahn, Dr Martin Cahn, Libby Earle, Peter Fane, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Sunita Hansraj, Geoff Harvey, Tumi Hawkins, Pippa Heylings, Helene Leeming, Daniel Lentell, Peter McDonald, Brian Milnes, Annika Osborne, Dr Lisa Redrup, Judith Rippeth, Bridget Smith, Susan van de Ven, Dr Aidan Van de Weyer, Natalie Warren-Green and John Williams

Against (9):

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

Abstain (0)

Council 

Agreed          to approve 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 (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,

    iii.         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 Resources, introduced the report, and commented on the Council’s proposal for not engaging with any short-term borrowing.

After no further comments, 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,

    iii.         Treasury Indicators