Agenda item

The Committee received the Council’s Treasury Management Strategy Statement (TMSS) for 2023/24 which would be presented to Full Council to agree at its meeting on 22 February 2023. Councillor T Butcher, Deputy Cabinet Member for Accessible Housing and Resources attended to present the Strategy. In line with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice for Treasury Management and the Council’s Financial Procedures (part of the constitution), the Council was required to submit a treasury management strategy statement for the following financial year to the Audit and Governance Committee to consider prior to the Council agreeing the strategy at its meeting on 22nd February 2023. The draft Treasury Management Strategy Statement for 2023/24 was attached as Appendix 1 to this report. The strategy for 2023/24 covered the current treasury position, treasury indicators which limit the treasury risk and activities of the Council, prospects for interest rates, the borrowing strategy, policy on borrowing in advance of need, debt rescheduling, the investment strategy, creditworthiness policy and the policy on use of external service providers.

During discussion, key points raised included:

·   The Committee had considered the Treasury Management Strategy extensively over the previous 12 months, and it was noted that the Strategy was wholly the same as the previous year’s aside from the proposed change to amend the section for investments placed with other local authorities so that the investment could only be placed with the prior approval of the Council Leader, or deputies in the case of leave, the Chief Executive and the Service Director of Finance. Furthermore, if a local authority that the Council had invested in subsequently issued a section 114 or was given a capitalisation directive, or any other untoward financial event experienced by an authority who the Council held an investment in this would be reported to the Audit and Governance Committee at the earliest opportunity.

·   It was suggested that within this proposed addition, the reference to the Service Director for Finance should also include reference to the Section 151 Officer.

ACTION: The Strategy to be updated to include reference to the Section 151 Officer in relation to the proposed addition in relation to investments in other local authorities.

·   The required prior approval from the Chief Executive, Leader and Section 151 Officer would provide a further safeguard when considering investing in other authorities

·   The monies invested with Thurrock Council and Slough Borough Council had now been repaid to the Council and no local authority had defaulted on a loan to another local authority.

·   Monthly monitoring of the treasury management position took place, at which meetings borrowing options were discussed and potential returns understood. It was also noted that the Council needed to keep a degree of liquidity to be responsive to needs, rather than tie all cash in to long term investments.

·   It was clarified that the increase in 2023/24 operational boundary figures contained at point 1.8 on page 54 of the report pack reflected the £10m worth of debts repaid and the £100m Cabinet prudential borrowing allowance if Cabinet chose to use this.

RESOLVED:

That the Council’s Treasury Management Strategy Statement (TMSS) for 2023/24 be recommended to Council for approval at its meeting on 22 February 2023.