Issue - meetings

To receive a report outlining 2023/24 Treasury Management, Capital and Investment Strategies prior to their consideration by Council.

Executive Councillor: B Mickelburgh.

The Cabinet has recommended to Council the approval of the Treasury Management, Capital and Investment Strategies (as outlined in Appendices 1, 2 and 3 of the submitted report) and the Minimum Revenue Provision Statement and the Flexible Use of Capital Receipts Strategy (as outlined in Appendices 4 and 5 of the submitted report).

A report by the Director of Finance and Corporate Resources was submitted (a copy of which is appended in the Minute Book) providing strategic guidance on how the Council conducts its Treasury Management, Capital and Investment activity.

By way of background, the Financial and Treasury Accountant reminded the Cabinet of the requirement for Council to approve the various strategies and statements under the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management in the Public Services. He then went on to draw attention to the inclusion of a Liability Benchmark within the Treasury Management Strategy 2023/24 (Appendix 1 of the report now submitted refers) which compares the Council’s existing loans against its future need for loan debt. Reference was also made to Environmental, Social and Governance (ESG) considerations, to which the Council was currently seeking advice from its Treasury Advisors on the use of a points based scoring system for future investment opportunities. Finally, comment was made on approved counterparties, where it was noted that some of the limits in Table 3 of the Treasury Management Strategy 2023/24 had been reduced in response to uncertainties within the current financial landscape over the next few years.

Following an explanation from the Executive Councillor for Planning on the views of the Overview and Scrutiny Panel (Performance & Growth) and in welcoming the information that was forthcoming on ESG considerations, it was

RESOLVED

  that Council be recommended to approve:

a)  the Treasury Management Strategy (as attached as Appendix 1 of the report now submitted);

b)  the Capital Strategy (as attached as Appendix 2 of the report now submitted);

c)  the Investment Strategy (as attached as Appendix 3 of the report now submitted);

d)  the Minimum Revenue Provision Statement (as attached as Appendix 4 of the report now submitted); and

e)  the Flexible Use of Capital Receipts Strategy (as attached as Appendix 5 of the report now submitted).

The 2023/24 Treasury Management Capital and Investment Strategies are to be presented to the Panel.

By means of a report by the Director of Finance and Corporate Resources (a copy of which was appended in the Minute Book) the 2032/24 Treasury Management, Capital and Investment Strategies was presented to the Panel.

Councillor Gleadow noticed the risk of a lack of specialist skills and asked how this was being mitigated after which, the Panel were assured that an additional member of staff would undertake training to assist in broadening the knowledge from the experienced Officer currently undertaking the work.

Following an enquiry from Councillor Gray, the Panel were assured that there had been no concern over Counter Parties over the past year which required urgent withdrawal of funds (although an investment with Thurrock BC had caused concern but had in the end been repaid on time) and that risk of investing generally had been minimised through use of DMO (Debt Management Office) and money market funds

Councillor Pickering enquired about the move to ESG products and the Panel were advised that whilst these products were still new to the market, an ESG compliance scoring mechanism is likely to be introduced by treasury advisors to help ascertain the right ESG investment products for the council’s consideration and also that reporting on this and other ESG developments would be included in future treasury management reports in due course.

It was thereupon

RESOLVED

that the comments of Overview and Scrutiny be passed to the Cabinet for consideration when making a decision on the recommendations contained within the report.