Agenda item

Report of the Managing Director.

The Cabinet Member with the Resources Portfolio introduced the report of the Managing Director (previously circulated) requesting consideration be given to reviewing the Prudential Indicators and Limits for 2021/22 to 2023/24 relating to capital expenditure and Treasury Management activity; a policy statement relating to the Minimum Revenue Provision; and the Treasury Management Strategy 2021/22, which includes the Annual Investment Strategy for 2021/22.

The submitted report outlined the Council’s Prudential Indicators for 2021/22 to 2023/24 and sets out the expected treasury operations for that period and reported that the expenditure plans, Treasury Management and Prudential Borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice, were prudent, affordable and sustainable and were an integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

The submitted report also included a Treasury Management Strategy for 2021/22, covering the Council’s debt and investment projections estimates and limits on future debt, expected movements in interest rates and the Council’s borrowing and investment strategies for future years.  Key objectives of the investment strategy were outlined noting that the primary objective was the safeguarding of the repayment of principal due to the Council, ensuring adequate liquidity of those investments and finally the rate of return on the investment.

RESOLVED - That it be recommended to the special meeting of Council scheduled to be held on18 February 20201 that:-:

(a)  the Prudential Indicators and limits for 2021/22 to 2023/24, as summarised in Tables 1 and 2 of the submitted report, be approved;

(b)  the Minimum Revenue Provision (MRP) statement, as detailed in paragraphs 33 to 37 of the submitted report, be approved;

(c)  the Treasury Management Strategy 2021/22 to 2023/24, as summarised in paragraphs 41 to 69 of the submitted report be approved; and

(d)  the Annual Investment Strategy 2021/22, as contained in paragraphs 70 to 107 of the submitted report, be approved.

REASONS - (a)  In order to comply with the Prudential Code for Capital Finance in Local Authorities and the Ministry of Housing, Communities & Local Government (MHCLG) guidance on investments.

(b)  To comply with the requirements of the Local Government Act 2003.

(c)  To approve a framework for officers to work within when making investment decisions.