Issue - meetings

The Executive Member for Finance, Governance and Organisation and Deputy Leader.

RESOLVED – that the Executive:

(i)               Considered the following and RECOMMEND their approval by Council:

·        Treasury Management Strategy for 2023/24

·        Investment Strategy 2023/24; and

·        Capital Strategy 2023/24.

Councillor Lewanski, Executive Member for Finance, Governance and Organisation, introduced the Treasury Management Strategy for 2023/24. In summary the Strategy comprised of three sections – 1) the Treasury Management Strategy Statement (TMSS) which set out details of the Council’s traditional treasury management activities such as sources of borrowing and investment limits; 2) Investment Strategy which covers the Council’s investments and 3) Capital Strategy which outlines the Council’s capital expenditure plans and core borrowing and investing activities.

The report had been prepared against a backdrop of considerable change for local authority treasury activities. Both the Government and CIPFA had made changes to the regulatory frameworks and guidance that govern how council borrow and invest. These changes will not have a significant impact on this council’s plans but some of the options that the Council might have considered going forward are no longer permitted.

Members of Overview and Scrutiny Committee, the Chair and the Chief Finance Officer had recently had an opportunity to discuss the underlying drivers for the Strategy with the Finance team and the Council’s Treasury advisors (Arlingclose) the previous week. This provided a useful update and provided assurance that the Council’s approach to treasury management was appropriate and compliant with good practice.

Overview and Scrutiny Committee noted the report at its meeting on 15 June 2023 and its observations were published as an Addendum to the Executive agenda pack.

There were no questions from Executive Members.

The Chair of Overview and Scrutiny Committee, Councillor Harrison, reported that he had been pleased with the good turnout to the treasury management advisors’ presentation – about two thirds of the Committee. Responsibility for the scrutiny of treasury management had recently transferred back to the Committee and the briefing helped all Members to improve their knowledge of this complex subject. The Committee had noted that the Council is expecting to receive a £34m capital receipt from the sale of housing properties at The Rise which help fund the capital programme. Members had raised questions about the Council’s borrowing and the investment portfolio. It was noted that most of the property assets had declined in terms of year-end valuation, however this was not an immediate concern because there were no plans to sell assets. Therefore these accounting losses will not impact on Council finances.

Visiting Members thanked the finance team for a good session and the summary in the minutes of a complex subject. Members asked how the CIPFA codes of practice had changed and what investments were permitted or were at increased risk. The Chief Finance Officer said will provide a written response.

The Leader thanked the Chief Finance Officer for responding to all the questions and for ensuring an efficient and financially prudent council.

RESOLVED – that the Executive:

(i)               Considered the following and RECOMMEND their approval by Council:

·        Treasury Management Strategy for 2023/24

·        Investment Strategy 2023/24; and

·        Capital Strategy 2023/24.