Agenda item

Treasury Strategy 2020/21


The Executive received a report detailing the proposed Treasury Management Strategy and the Treasury Management Indicators for 2020/21, plus the Minimum Revenue Provision policy statement, estimated minimum revenue provision payment table, and Treasury Management Policy Statement.


The report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to both the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice.


The Council invested and borrowed large sums of money and was, as a result, exposed to financial risks which included the revenue impact of changing interest rates and the loss of part or all invested funds. The successful identification, monitoring and control of risk were, therefore, central to the Council’s Treasury Management Strategy.


In accordance with the CLG Guidance, any changes required to the approved Treasury Management Indicators and Strategy would be reflected in future reports for the Executive and the Council to consider.


The budget for investment income in 2020/21 was £140,000 calculated as an average return of 108% on a £13m portfolio.   £3.8m had been budgeted for interest payments calculated as average cost of 2% on a debt of £164m. These figures were influenced by changes to interest rates, levels of debt and investment funds.


The proposed Corporate Capital Programme for 2020/21 – 2022/23would need to be funded by capital receipts.


RECOMMENDED to Council that

(i)        the Treasury Management Strategy for 2020/21 as set out in the agenda report;

(ii)      the Treasury Management Indicators for 2020/21 at Annex C to the agenda report;


(iii)     the Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table at Annex F to the agenda report; and


(iv)     the Treasury Management Policy Statement at Annex G to the agenda report;


be adopted.



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