Decision details

Matter for Decision

 

The Council has adopted The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management (Revised 2021). This half-year report has been prepared in accordance with the Code and covers the following:

·      An economic update for the first half of the 2022/23 financial year;

·      A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

·      The Council’s capital expenditure, as set out in the Capital Strategy, and prudential indicators;

·      A review of the Council’s investment portfolio for 2022/23;

·      A review of the Council’s borrowing strategy for 2022/23; and,

·      A review of compliance with Treasury and Prudential Limits for 2022/23.

·      Cash and investment balances are forecast to stay at the increased level seen over the past year at around £173 million by 31st March 2023.

·      Interest receipts for the year are projected at £1,159,000 which is £358,000 above the original budget. Interest receipts are forecast higher than last year due mainly to increases in investment rates.

 

Decision of the Executive Councillor for Executive Councillor for Finance, Resources and Transformation

 

The Executive Councillor recommended to Council:

 

·      The Council’s estimated Prudential and Treasury Indicators for 2022/23 to 2025/26 (Appendix A).

·      That the revised counterparty list be approved (Appendix B).

·      To approve the addition of a loan to the Cambridge Investment Partnership in the counterparty list, to bring these into line with the approved expenditure per the approved capital plan (Appendix B).

 

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Head of Finance.

Members asked the following:

Was it appropriate to completely base the revised Counterparty list on a judgement of Link Asset Services (the Council’s advisors)

Will the Council receive 100% of the Thurrock Council loan?

 

The Head of Finance said the following in response to Members’ questions:

 

Yes, we have always based our counterparty list on Links’ advice. Their colour coding is based on their review of a number of financial indicators and updated daily, therefore is more reliable and up-to-date than we could do ourselves.

We would not want to invest too much with one counterparty, so will work within the limits advised by Link, which bring together all types of investment held with each counterparty.

Yes, we are confident that we will receive back the funds loaned to Thurrock Council in full.

Councils are considered very low risk, as councils who are in difficulty are supported by government to recover. No council has failed to repay loans when due. Therefore, there is no need for further due diligence when lending to another local authority.

 

The Committee unanimously resolved to approve:

                        i.         The Council’s estimated Prudential and Treasury Indicators for 2022/23 to 2025/26 (Appendix A).

 

The Committee resolved (6-0 with 2 abstentions) to approve:

                      ii.         That the revised counterparty list be approved (Appendix B)

 

The Committee unanimously resolved to approve:

                     iii.         To approve the addition of a loan to the Cambridge Investment Partnership in the counterparty list, to bring these into line with the approved expenditure per the approved capital plan (Appendix B).

 

The Executive Councillor approved the recommendations.