Agenda item

Treasury Strategy 2021/22

Decision:

The Executive RECOMMENDED to Council that

(i)            The Treasury Management Strategy for 2021/22 as set out in the agenda report;

(ii)          The Treasury Management Indicators for 2021/22 as set out at Annex C to the agenda report;

 

(iii)         The Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table as set out at Annex F of the agenda report; and

 

(iv)         The Treasury Management Policy Statement as set out at Annex G of the agenda report

 

be adopted.

 

Minutes:

The Executive was informed that the budget for investment income in 2021/22 was £75,000, based on an average investment portfolio of £31 million at an interest rate of 0.25%. The budget for debt interest paid in 2021/22 was £2.5 million, based on an average debt portfolio of £174 million at an average interest rate of 1.43%. If actual levels of investments and borrowing, or actual interest rates, differed from those forecast, performance against budget would be correspondingly different.

 

Where investment income exceeded budget, then the revenue savings would be transferred to the Interest Equalisation reserve to cover the risk of capital losses or higher interest rates payable in future years.

 

Funding for the proposed corporate capital programme for 2021/22 – 2023/24 would be funded by capital receipts, capital reserves and government grants.

 

The Council had borrowed and invested substantial sums of money and was therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates. The successful identification, monitoring and control of financial risk was therefore central to the Council’s prudent financial management. In accordance with the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2017 Edition the Council was required to approve a treasury management strategy before the start of each financial year.

 

Any changes required to the approved treasury management indicators and strategy, would be reflected in future reports to the Executive and Council.

 

RECOMMENDED to Full Council that

 

(i)        The Treasury Management Strategy for 2021/22 as set out in the agenda report;

 

(ii)      The Treasury Management Indicators for 2021/22 as set out at Annex C to the agenda report;

 

(iii)     The Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table as set out at Annex F of the agenda report; and

 

(iv)     The Treasury Management Policy Statement as set out at Annex G of the agenda report

 

be adopted.

 

 

Supporting documents: