Agenda item

Report number: COU/WS/22/002

A.      Referrals from Cabinet: 8 February 2022

1.       Financial Resilience - Strategy Statement 2022 to 2023 and Treasury Management Code of Practice

          Portfolio holder: Councillor Sarah Broughton

2.       Treasury Management Report (December 2021)

          Portfolio holder: Councillor Sarah Broughton

3.       Budget and Council Tax Setting 2022 to 2023 and Medium Term Financial Strategy 2022 to 2026

          Portfolio holder: Councillor Sarah Broughton

(The recommendations emanating from this item, together with Cabinet’s approval of the recommendation contained in Report number: CAB/WS/22/005 ‘Recommendation of the Performance and Audit Scrutiny Committee: 27 January 2022 - Delivering a Sustainable Medium-Term Budget’  have been incorporated into the main budget setting report due to be considered later on this Council agenda at Agenda Item 8. No decision is therefore required at this stage.)

Council considered the referrals report of recommendations from Cabinet, as contained within report number: COU/WS/22/002.

A.      Referrals from Cabinet: 8 February 2022

1.      Financial Resilience – Strategy Statement 2022 to 2023 and Treasury Management Code of Practice

Approval was sought for the Financial Resilience - Strategy Statement 2022 to 2023 and the Treasury Management Code of Practice.

Councillor Sarah Broughton, Portfolio Holder for Resources and Property, drew relevant issues to the attention of Council, including that the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management Code of Practice required that, prior to the start of the financial year the Council should formally approve a Treasury Management Policy Statement and Investment Strategy, setting out the Council’s treasury management policy and strategy for the forthcoming year.

The Treasury Management Strategy Statement 2022 to 2023 was attached as Appendix 1 to Report number: FRS/WS/22/002, and the Treasury Management Code of Practice attached as Appendix 2.

The report also included additional supporting information on treasury advisors; borrowing strategy; investment strategy counterparty ratings and interest rate projections.

On 27 January 2022, the Performance and Audit Scrutiny Committee (PASC) considered the report and asked various questions relating to the setting of net costs, capital and revenue limits and the borrowing strategy, to which responses were provided.  In particular, the Committee discussed the Treasury Management Code of Practice (Appendix 2) and referred to page 24 of the Code and the section which related to ‘Use of External Brokers/Advisors/Fund Managers’.  The Committee expressed some reservations around the wording used within that section, in that the Council ‘will’ employ the services of other organisations to assist it in the field of treasury management.  The Committee recommended that this word be replaced with ‘may’, so that the Council had the flexibility around the use of services of other organisations.

The Cabinet had supported the approval of the Code of Practice, including the proposed amendment, and approval of the Treasury Management Strategy Statement 2022 to 2023, as summarised above.

On the motion of Councillor Broughton, seconded by Councillor Ian Houlder, it was put to the vote and with the vote being 45 for the motion, none against and four abstentions, it was

Resolved:

That:

1.       The Treasury Management Strategy Statement 2022 to 2023 as set out in Appendix 1 to Report number: FRS/WS/22/002, be approved.

2.       The Treasury Management Code of Practice, as set out in Appendix 2 to Report number: FRS/WS/22/002, be approved, subject to an amendment within the section of the Code of Practice entitled ‘Use of External Brokers / Advisors / Fund Managers’, with the removal of the word ‘will’, to be replaced with the word ‘may’, to ensure that the Council has the flexibility on the use of services of other organisations.  

2.      Treasury Management Report (December 2021)

Approval was sought for the Treasury Management Report for the third quarter of the 2021 to 2022 financial year.

Councillor Sarah Broughton, Portfolio Holder for Resources and Property, drew relevant issues to the attention of Council.

On the motion of Councillor Broughton, seconded by Councillor Brian Harvey, it was put to the vote and with the vote being 45 for the motion, none against and four abstentions, it was

Resolved:

That the Treasury Management Report (December 2021), as contained in Report number: FRS/WS/22/001, be approved.

3.      Budget and Council Tax Setting 2022 to 2023 and Medium Term Financial Strategy 2022 to 2026

The recommendations emanating from the Cabinet’s consideration of this report, together with its approval of the Performance and Audit Scrutiny Committee’s recommendation contained in Report number: CAB/WS/22/005 ‘Delivering a Sustainable Medium-Term Budget’ were integrated within the main budget setting report, which was considered next on this agenda.

No decision was therefore required at this stage.