Issue - meetings

Report No:   CAB/SE/15/003

Cabinet Member: David Ray           Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL:

That:

(1)the Annual Treasury Management and Investment Strategy Statements 2015/2016, as contained in Appendix 1 to Report TMS/SE/15/002, be adopted; and

(2)the Head of Resources and Performance, in consultation with the Portfolio Holder for Resources and Performance and the Chairman of Treasury Management Sub-Committee, be given delegated authority to make amendments to the Treasury Management Investment Strategy, taking into account advice of the Council’s Treasury Management Advisors in response to changes to credit ratings resulting from the implied removal of sovereign support in the Bank of England’s ‘bail-in’ regulations. 

The Cabinet considered Report No: CAB/SE/15/003 (previously circulated), which sought approval for the Annual Treasury Management and Investment Strategy Statements for 2015/2016.

The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management required that, prior to the start of the financial year, the Council formally approved an Annual Treasury Management and Investment Strategy, setting out the Council’s treasury management policy and strategy statements for the forthcoming year.

Councillor Ray, Portfolio Holder for Resources and Performance drew relevant issues to the attention of the Cabinet, including that the potential implications of changes to credit ratings calculated by rating agencies as a result of the implied removal of sovereign support to banks needed to be assessed. The Cabinet therefore considered it prudent to accept the second recommendation proposed by Councillor Ray, as detailed in the recommendation to full Council below.

RECOMMENDED TO COUNCIL:

That:

(1)    the Annual Treasury Management and Investment Strategy Statements 2015/2016, as contained in Appendix 1 to Report TMS/SE/15/002, be adopted; and

(2)    the Head of Resources and Performance, in consultation with the Portfolio Holder for Resources and Performance and the Chairman of Treasury Management Sub-Committee, be given delegated authority to make amendments to the Treasury Management Investment Strategy, taking into account advice of the Council’s Treasury Management Advisors in response to changes to credit ratings resulting from the implied removal of sovereign support in the Bank of England’s ‘bail-in’ regulations. 

(Councillor Houlder left the meeting during the consideration of this item.)