Issue - meetings

To consider a report by the Director of Finance and Corporate Resources on the 2024/25 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 report now submitted) and the Minimum Revenue Provision Statement and the Flexible Use of Capital Receipts Strategy (as outlined in Appendices 4 and 5 of the report now submitted).

With the aid of a report prepared by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book) the Cabinet reviewed a report that clarified the purpose of the Treasury Management Strategy used to support the Council in meeting its requirement to operate a balanced budget. In addition, the treasury management operation ensured that this cash flow was properly planned, with cash being available when needed.

By way of background, the Director of Finance and Corporate Resources stated that the Strategy will include relevant policies, objectives and treasury and prudential indicators; as well as illustrating its approach to risk management, comply with the Code or Practice for Treasury Management and the Prudential Code for Capital Finance (as issued by the Chartered Institute of Public Finance and Accountancy, CIPFA) and follow published Government advice; approve the way in which the Minimum Revenue Provision is calculated.

The Cabinet noted that the Treasury Management Strategy was a key element of the Council’s Code of Financial Management and MTFS. The Capital Strategy provides an overview of capital expenditure and financing, that included the borrowing strategy and limits; capital expenditure and the capital financing requirement; and revenue implications. Whereas the Investment Strategy includes service loans, property investments and performance indicators.

The Cabinet noted that the Flexible Use of Capital Receipts Strategy, outlines if the Council intends to make flexible use of capital receipts. In addition to complying with CIPFA’s Treasury Management in the Public Services: Code of Practice 2021 Edition, the Council must also comply with the Department for Levelling Up, Housing and Communities (DLUHC) guidance, both of which require the approval of an annual Treasury, Investment and Capital strategies before the start of each financial year. This strategy fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the DLUHC Guidance.

Members attention was drawn to the comments of the Overview and Scrutiny Panel in particular the enquiry from Councillor Howell about the management of those properties from outside the District, the Panel had been assured that the Team managed these long-term investments and took into account a variety of risk factors to ensure both best value and protection for the Council.

Accordingly, the Cabinet

RESOLVED.

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