Agenda item

Report of the Group Director of Operations

The Group Director of Operations submitted a report (previously circulated) for Members of this Audit Committee to review and scrutinise the Prudential Indicators and Limits for 2023/24 to 2025/26 relating to capital expenditure and Treasury Management activity; a policy statement relating to the Minimum Revenue Provision; the authorised limit; and the Treasury Management Strategy 2023/24, which includes the Annual Investment Strategy for 2023/24, prior to approval and adoption by Cabinet and Council.

The submitted report outlined the Council’s Prudential Indicators for 2023/24- 2025/26 and set out the expected treasury operations for this period and it was reported that the Council’s capital expenditure plans, Treasury Management and Prudential Borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice; prudent, affordable and sustainable; and were an integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

The submitted report highlighted a third new prudential indicator for 2023/24, the Liability Benchmark (LB) which the Council is required to estimate and measure the LB for the forthcoming financial year and the following two financial years, as a minimum.  The three main components to the LB being existing borrowing (loan debt outstanding); net loans requirement (Forecast Net Loans Debt); and Liability benchmark (or gross loans requirement).

It was reported that the Treasury Management Strategy for 2023/24 will cover two main areas, Capital Issues and Treasury Management Issues and a summary of the key prudential indicators and limits were also contained within the submitted report; and these elements covered the requirements of the Local Government Act 2003, the CIPFA Prudential Code, Ministry of Housing, Communities and Local Government (MHCLG) Minimum Revenue Provision (MRP) Guidance, the CIPFA Treasury Management Code and the MHCLG Investment Guidance.

It was also highlighted that the CIPFA Prudential code requires the responsible officer to ensure that Members with responsibility for treasury management receive adequate training in treasury management and training was undertaken by a number of Members during two sessions held in September 2021 and further training will be arranged as required.

RESOLVED - That this Audit Committee is satisfied with the Prudential Indicators and Treasury Management Strategy for 2023/24 to 2025/26, the Minimum Revenue Provision statement, the Treasury Management Strategy 2023/24 to 2025/26 and the Annual Investment Strategy 2023/24, as presented in the submitted report, and that the report be forwarded to Cabinet for its onward referral to Council for consideration.