Issue - meetings

Report of the Director – Finance and Corporate Services.

The Finance Business Partner presented the Capital and Invest Strategy for 2024/25 to 2028/29 which focuses on both traditional treasury activity, commercial investments and capital plans and is the key component of the Council’s Medium Term Financial Strategy (MTFS) approved by Council.

The Group noted the Capital and Investment Strategy 2024/25 and 2028/29 provided in Appendix A which reflects Government Guidance and the CIPFA Treasury Management and Prudential Codes.

In the supporting information the Finance Business Partner explained the four areas of Treasury Management:

Capital Prudential Indicators

·       Projected capital expenditure plans and funding

·       The Council’s borrowing need (Capital Financing Requirement CFR)

·       The ongoing impact of the capital programme on the investment balance

·       Projected levels of Council debt and CFR

Minimum Revenue Provision Policy

The Minimum Revenue Provision (MRP) Policy statement contains details of the methodology used to calculate the charge to the revenue account for the cost of borrowing to fund capital expenditure.

Treasury Management Strategy

·       Current economic climate and interest rates

·       The Council’s Borrowing Strategy

·       The affordability of the capital programme

·       The Council’s Investment Strategies

·       Any local treasury issues.

Commercial Investments

·       The limit of the Council’s dependency on commercial income

·       How risk is spread across both commercial sectors and the size of investments in relation to asset value

·       An ongoing review of existing assets

The Finance Business Partner advised that the Capital Prudential Indicators and Treasury management Strategy provide both a position statement and details of the future position of the Council’s Capital, Commercial Investment Treasury Plans.

The Group complimented officers on the recent treasury training delivered by Arlingclose the Council’s Treasury Management advisors which Councillors found interesting and helpful when it comes to understanding the complexity of the Council’s Treasury Management activities.

It was RESOLVED that the Governance Scrutiny Group scrutinise and approve for Full Council:

a)    The Capital Strategy and Capital Prudential Indicators and limits for 2024/25 to 2028/29 contained in Appendix A (paragraph 4 to 15)

b)    The Minimum Revenue Position (MRP) Statement contained within Appendix A (paragraph 16 and 17) which sets out the Council’s policy on MRP

c)     The Treasury Management Strategy 2024/25 to 2028/29 and the Treasury Indicators contained within Appendix A (paragraphs 18 to 63)

d)    The Commercial Investments Indicators and Limits for 2024/25 to 2028/29 contained within Appendix A (paragraphs 64 to 76).