Issue - meetings

Purpose of Report

To provide the Executive with an opportunity to consider the adoption of the 15 statutory prudential indicators and eight local indicators for the period 2020/21 to 2023/24, together with the 2021/22 Treasury Management Strategy prior to reporting to Council for final approval.

Decision

Executive recommended to Council for approval:

(1)       The Prudential Indicators detailed in paragraph 4.1 and Appendix 1 of the report.

(2)       The Treasury Management Strategy, including the treasury management prudential indicators and the Investment Strategy, set out in paragraph 4 and Appendix 3 of the report.

(3)       The revised Minimum Revenue Provision Policy in Appendix 2 of the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report set out the operation of the Council’s prudential indicators, its treasury function and its likely activities for the forthcoming year which incorporated the following key reporting requirements:

·         Prudential and Treasury Indicators – the reporting of the statutory prudential indicators together with local indicators, in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities and the CIPFA Treasury Management Code of Practice;

·         Minimum Revenue Provision Statement – the reporting of the Minimum Revenue Provision Policy which set out how the Council would pay for capital assets through revenue each year (as required by regulation under the Local Government Act 2003);

·         Treasury Management Strategy – which set out how the Council’s treasury activity would support capital decisions, the day-to-day treasury management and the limitations on activity through treasury prudential indicators. The key indicator was the Authorised Limit, the maximum amount of debt the Council could afford in the short term, but which would not be sustainable in the longer term. This was the Authorised Borrowing Limit required by Section 3 of the Local Government Act 2003 and was in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code;

·         Investment Strategy – this was included within the Treasury Management Strategy and set out the criteria for choosing investment counterparties and limiting exposure to the risk of loss (reported annually in accordance with the Ministry of Housing, Communities Local Government (MHCLG) Investment Guidance).

The Council adopted the CIPFA Code of Practice on Treasury Management (revised December 2017) on 2 March 2010, together with the Treasury Management Policy Statement. The Treasury Management Policy & Practices (TMP’s) were updated annually to reflect the Treasury Management Strategy approved by Council and to reflect any changes in staffing structures or working practices of the treasury function as attached at Appendix 4 of the report.