Issue - meetings

[To approve the Treasury Management Strategy 2022-2023]

That Council be recommended to approve:

1.    The authorised borrowing limit for 2022-2023 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 to be set at £1,163.3 million (PI3, Appendix 3 to this report).  The authorised borrowing limit includes a forecast provision for potential business cases that may be brought forward during the year, additional borrowing will only be authorised if the business case proves to be affordable over the medium term.  The forecast borrowing is below the authorised borrowing limit.

2.    The Treasury Management Strategy Statement 2022-2023 as set out in Appendix 1 to this report.

3.    The Annual Investment Strategy 2022-2023 as set out in Appendix 2 to this report.

4.    The Prudential and Treasury Management Indicators as set out in Appendix 3 to this report.

5.    The Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2022-2023 as set out in Appendix 4 to this report.

6.    The Treasury Management Policy Statement and Treasury Management Practices as set out in Appendix 6 to this report.

7.    That authority be delegated to Cabinet to approve updates to the Treasury Management Strategy and corresponding practices during 2022-2023 to reflect the additional reporting requirements detailed in the most recent publication of the revised Treasury Management and Prudential Codes. It is important to note that, the Council complies with the principles of the codes however due to the timing of the release of the new Codes, CIPFA has allowed reporting on the Codes to be deferred until 2023-2024.

8.    That authority continues to be delegated to the Director of Finance to amend the Treasury Management Policy and Practices and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned.  Any amendments will be reported to the Portfolio Holder for Resources and Cabinet (Resources) Panel as appropriate.

9.    That authority continues to be delegated to the Director of Finance to lower the minimum sovereign rating in the Annual Investment Strategy, in the event of the UK’s credit rating being downgraded by the third credit rating agency, due to the current economic climate.

10.That authority is delegated to the Portfolio Holder for Resources, in consultation with the Director of Finance, to amend the MRP statement should this be required following the outcome of the consultation.

That Cabinet approves:

1.    That authority is delegated to the Portfolio Holder for Resources in consultation with the Director of Finance to progress feasibility and investment propositions in a timely manner.  Updates on any propositions will be provided to Cabinet or Cabinet (Resources) Panel in future reports.

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That Council be recommended to note:

1.    That the MRP charge for the financial year 2022-2023 will be £19.8million; it is forecast to increase to £21.1 million in 2023-2024 (paragraph 2.20 of the report).

2.    That Cabinet or Cabinet (Resources) Panel and Council would receive regular Treasury  ...  view the full decision text for item 5

Councillor Ian Brookfield presented the report on the Treasury Management Strategy 2022-2023 for approval and recommendation to Full Council. The Strategy set out various strategies the Council must comply with in the management of its borrowing, investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

Resolved:

That Council be recommended to approve:

1.    The authorised borrowing limit for 2022-2023 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 to be set at £1,163.3 million (PI3, Appendix 3 to this report).  The authorised borrowing limit includes a forecast provision for potential business cases that may be brought forward during the year, additional borrowing would only be authorised if the business case proves to be affordable over the medium term.  The forecast borrowing is below the authorised borrowing limit.

2.    The Treasury Management Strategy Statement 2022-2023 as set out in Appendix 1 to this report.

3.    The Annual Investment Strategy 2022-2023 as set out in Appendix 2 to this report.

4.    The Prudential and Treasury Management Indicators as set out in Appendix 3 to this report.

5.    The Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2022-2023 as set out in Appendix 4 to this report.

6.    The Treasury Management Policy Statement and Treasury Management Practices as set out in Appendix 6 to this report.

7.    That authority be delegated to Cabinet to approve updates to the Treasury Management Strategy and corresponding practices during 2022-2023 to reflect the additional reporting requirements detailed in the most recent publication of the revised Treasury Management and Prudential Codes. It is important to note that, the Council complies with the principles of the codes however due to the timing of the release of the new Codes, CIPFA has allowed reporting on the Codes to be deferred until 2023-2024.

8.    That authority continues to be delegated to the Director of Finance to amend the Treasury Management Policy and Practices and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned.  Any amendments would be reported to the Portfolio Holder for Resources and Cabinet (Resources) Panel as appropriate.

9.    That authority continues to be delegated to the Director of Finance to lower the minimum sovereign rating in the Annual Investment Strategy, in the event of the UK’s credit rating being downgraded by the third credit rating agency, due to the current economic climate.

10.That authority is delegated to the Portfolio Holder for Resources, in consultation with the Director of Finance, to amend the MRP statement should this be required following the outcome of the consultation.

That Cabinet approves:

1.    That authority is delegated to the Portfolio Holder for Resources in consultation with the Director of Finance to progress feasibility and investment propositions  ...  view the full minutes text for item 5