Issue - meetings

Treasury management strategy 2021/22 - to recommend Council to approve the strategy

Meeting: 10/02/2021 - Council (Item 142)

142 Treasury management and investment strategy 2021/22 pdf icon PDF 395 KB

Cabinet, at its meeting on 5 February 2021, will consider a report on the council’s treasury management and investment strategy for 2021/22.

 

The Joint Audit and Governance Committee considered the report at its meeting on 26 January 2021 and had not recommended any adjustments to the strategy. 

 

The committee resolved to recommend Cabinet to approve the treasury management strategy, the prudential indicators and limits for 2021/22 to 2023/24 and the annual investment strategy 2021/22 as set out in the report.

 

The report of the interim head of finance, which Cabinet will consider on 5 February 2021, isattached.

 

The recommendations of Cabinet will be circulated to all councillors following the Cabinet meeting.

Minutes:

Council considered Cabinet’s recommendation, made at its meeting on 5 February 2021, on the council’s treasury management and investment strategy for 2021/22.

 

The Joint Audit and Governance Committee had considered the report at its meeting on 26 January 2021 and had not recommended any adjustments to the strategy and resolved to recommend Cabinet to approve the treasury management strategy, the prudential indicators and limits for 2021/22 to 2023/24 and the annual investment strategy 2021/22 as set out in the report. Cabinet agreed to recommend Council approve the strategy. 

 

In introducing Cabinet’s recommendations, the Cabinet member for finance reported that there were no significant changes to the strategy.  However, the report did reflect a significant fall in projections of investment income due to low interest rates that are likely to prevail for some time. As capacity permits, the council would be looking to progress a more proactive treasury management strategy during the coming year to address the budget shortfall.

 

RESOLVED to:

 

1.    approve the treasury management strategy 2021/22, as set out in appendix A to the interim head of finance’s report to Cabinet on 5 February 2021;

2.    approve the prudential indicators and limits for 2021/22 to 2023/24, as set out in appendix A to that report; and

3.    approve the annual investment strategy 2021/22 set out in appendix A,and the lending criteria detailed in table 6 to that report.

 


Meeting: 05/02/2021 - Cabinet (Item 82)

82 Treasury management and investment strategy 2021/22 pdf icon PDF 395 KB

Minutes:

Cabinet considered the interim head of finance’s report on the treasury management and investment strategy for 2021/22. 

 

The report had been considered by the Joint Audit and Governance Committee on 26 January 2021.  The committee supported the recommendations to approve the strategy, the prudential indicators and limits, and the annual investment strategy, and recommended this to Cabinet. 

 

Cabinet agreed, noting that the strategy set boundaries for the council’s borrowing, investments and exposure to loss, as well as setting the prudential indicators.  The strategy prioritised security, then liquidity and finally yield.  There were no significant changes to the strategy.  However, as income was likely to fall due to low interest rates, the council would be looking to progress a more proactive treasury management strategy during the coming year, working together with the capital strategy and the investment strategy. 

 

RECOMMENDED to Council on 10 February 2021 to:

 

(a)      approve the treasury management strategy 2021/22, as set out in appendix A to
the interim head of finance’s report to Cabinet on 5 February 2021;

 

(b)      approve the prudential indicators and limits for 2021/22 to 2023/24, as set out in appendix A to that report; and

 

(c)           approve the annual investment strategy 2021/22 set out in appendix A,and the lending criteria detailed in table 6 to that report. 


 

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