Decision details

The Cabinet had before it a report * from the Deputy Chief Executive (S151) informing it of the treasury performance during the first six months of 2023/24, to agree the ongoing deposit strategy for the remainder of 2023/24 and a review of compliance with Treasury and Prudential Limits for 2023/24.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·       Changes in the Regulations required more regular reports to be presented to the decision makers of local authorities.

·       Higher returns had been achieved due to an increase in interest rates and a slippage on the Capital Programme.

·       No additional borrowing had been required.

·       An economic summary had been provided, showing the deposits held at the end of the quarter and the yields being achieved.

·       The report confirmed that the lending criteria remained appropriate.

Consideration was given to:

·       The security around short term deposits and whether these had reached maturity, it was confirmed that they had.

·       Reassurance was provided that the Council only borrowed from organisations with high ethical standards. This could be further strengthened as a requirement within the Treasury Management Policy approved by Council each year in February.

·       Funds placed with CCLA (Churches, Charities and Local Authorities) were currently doing well.

·       Some funds were only available for a finite amount of time.

RECOMMENDED to Full Council that:

a)    A continuation of the current policy outlined at paragraphs 4.0 – 4.5 be approved; and

b)    The changes to the Capital Financing Requirement, Operational Boundaries and Authorised Limits for the current year at paragraphs 5.4 – 5.5 be approved.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Reason for the Decision

Good financial management and administration underpinned the entire strategy. The Council’s Treasury Management Strategy should attempt to maximise investment return commensurate with minimum risk to the principal sums invested. The Council was under a statutory duty to “have regard” to the 2011 CIPFA Treasury Management Code of Practice. The Council’s own Financial Regulations included requirements as to the reporting of treasury management information. The Council considered deposit security as the paramount function in any treasury dealings or activities. It should be noted that any investment decisions would always be subject to a degree of risk. However, in complying with an agreed Treasury Management Strategy, these risks would be kept to an acceptable level.

Note: * Report previously circulated.