Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

RESOLVED – That Full Council be recommended that the Treasury Management Policy and Strategy 2021/22, as set out in Appendix A to the report, be adopted.

REASON FOR DECISION:

The security of the Council’s cash and effective cash flow management is vital in order to support all the services provided by the Council.  The interest received from the Council’s investments is an important source of income in helping the Council set a balanced budget.

Lee Colyer, Director of Finance, Policy and Development introduced the report that formed part of the Council’s financial management arrangements that ensured a framework for decisions was in place.

Discussion and responses to Members questions included the following:

-       There were two main changes from the previous strategy:

o   The authorised limit for external debt had been reduced back to £20m.  This reflected the lack of  progress by the Civic Complex Cross Party Working Group in agreeing how to address the major issues related to the Civic buildings.

o   The report also reflected the further reduction in interest rates that were available from the Public Works Loans Board (PWLB) which were now below previous record lows and were expected to remain at these levels for the foreseeable future.

-       Initially the Council extended the amount of debt it was able to hold to enable funds to come forward subject to suggestions made by the Cross Party Working Group regarding the Civic complex.  It would be for the Cross Party Working Group to come up with a proposal and give a mandate to officers as to how to address these issues.

RESOLVED – That Full Council be recommended that the Treasury Management Policy and Strategy 2021/22, as set out in Appendix A to the report, be adopted.

REASON FOR DECISION:

The security of the Council’s cash and effective cash flow management is vital in order to support all the services provided by the Council.  The interest received from the Council’s investments is an important source of income in helping the Council set a balanced budget.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Lee Colyer, Director of Finance, Policy and Development introduced the report that formed part of the Council’s financial management arrangements that ensured a framework for decisions was in place.

Discussion and responses to Members questions included the following:

-       There were two main changes from last year.  The authorised limit for external debt had been reduced back to £20m and the further reduction to interest rates from the PWLB. 

-       The Council invested in whole sale money markets and would take action should there be a risk of moving into negative interest.

-       In addition, the Council’s contract with Lloyds Bank included certain protections. 

-       Most organisations avoided retendering their banking contracts.  However, TWBC went out to tender about 7-8 years ago and was able to successfully negotiate a much better deal.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.