Purpose of Report
To review
and to recommend to the Council the adoption of the 15 statutory
prudential indicators and 8 local indicators for the period 2021/22
to 2024/25 together with the 2022/23 Treasury Management
Strategy.
Decision
(1)
That the Council be recommended:
(a)
to adopt the prudential indicators, as detailed in
section 4.1 and appendix 1 of the report.
(b) to
approve the Treasury Management Strategy (including the treasury
management prudential indicators and the Investment Strategy), as
set out section 4 and appendix 3 of the report.
(c) to
approve the Minimum Revenue Provision policy in Appendix 2 of
the report.
(d) to
adopt the Treasury Management Practices in Appendix 4 of the
report.
(2)
That the extract of the minutes of the meeting of
the Audit Committee held on 1 February 2022, as set in Appendix 5
of the report, be noted.
Alternative Options Considered and Rejected
None.
Reasons for the 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 elements:
- Prudential
Indicators – There would be reporting against 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 – There would be reporting in accordance
with 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 – This 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 in the Treasury
Management Strategy and set out the criteria for choosing
investments and limiting exposure to the risk of loss, which was
reported annually in accordance with government investment
guidance.