Cabinet considered the head of finance’s report on a draft treasury management and investment strategy for 2023/24. This set out how the council’s treasury service would support the financing of capital investment decisions, and how treasury management operated day to day. The strategy also set out the prudential indicators, providing limits within which the treasury function must operate.
The Cabinet member for finance highlighted the following changes proposed to the strategy for 2023/24, which Cabinet was asked to recommend to Council:
· amend individual maximum counterparty limits for the higher credit rated counterparties, increasing the limits for LVNAV & VNAV Money Market Funds to £30 million
· increase specified instruments counterparty limit for banks and building societies with a minimum F1, A- credit rating from £10 million to £15 million
· increase non-specified instruments counterparty limit for institutions with a minimum credit rating of F1+, AA- from £10 million to £15 million
· amend the minimum lending criteria, increasing the minimum asset value criteria for non-rated building societies from assets over £1 billion to assets over £2 billion
Cabinet noted that the Joint Audit and Governance Committee had supported the draft strategy and had recommended this to Cabinet, along with approving the prudential indicators and limits, and approving the annual investment strategy and lending criteria.
Cabinet supported the changes to the strategy.
RECOMMENDED to Council to:
(a) approve the head of finance’s report to Cabinet on 3 February 2023;
(b) approve the treasury management strategy 2023/24, as set out in appendix A to the report;
(c) approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and
(d) approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in table 6 in appendix A to the report.