Decision Maker: Executive
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
This report considers the draft Treasury Management Strategy and Investment Strategy for 2022/23, prior to its submission to the Council for approval.
Regulations require the Council to prepare and formally approve both an annual Treasury Management Strategy and Investment Strategy. The document for 2022/23 is attached as Appendix A to the report for consideration by the Executive before being submitted to Council for approval. There have been no significant changes proposed to the strategies.
CIPFA published revised versions of its Treasury Management Code of Practice and the Prudential Code in late December 2021. Due to the late publications, CIPFA recognises that changes may not be fully implemented until 2023/24 due to the lead-in time to produce the strategy. Therefore, this strategy is based on the 2017 version of both Codes.
In the past 12 months, the Council’s investment balance has ranged between £16 million and £25 million and similar levels are expected to be maintained in the forthcoming year. The majority of the Council’s investments is expected to be invested in short-term unsecured bank deposits and money market funds with approximately £16 million available for longer-term investment.
Borrowing levels are expected to increase to a projected £72.7 million at the end of 2022/23 to fund the capital programme. The Council has previously raised all of its long-term borrowing from the Public Works Loan Board (PWLB) but will consider long-term loans from other sources. PWLB loans are no longer available to local authorities planning to buy investment assets primarily for yield.
Recognising the Council’s commitment to climate change mitigation, a new Environmental, Social and Governance (ESG) Policy identifying investment considerations has been added.
RESOLVED that the Executive:
(a) endorses the draft Treasury Management Strategy and Investment Strategy for 2022/23, attached as Appendix A to the report; and
(b) agrees to submit the report to Council for approval.
Report author: Caroline Hancock
Publication date: 09/02/2022
Date of decision: 07/02/2022
Decided at meeting: 07/02/2022 - Executive
Effective from: 19/02/2022