Issue - meetings

Report of the Executive Director of Corporate Resources and Customer Services

The Committee considered the report of the Executive Director of Corporate Resources and Customer Services that set out the following proposed policy and strategy documents:

a)    Treasury Management Policy (Annex A);

b)    Treasury Management Strategy (Annex B); and

c)    Minimum Revenue Provision Policy Statement (Annex C)

The report concluded by requesting the Committee to provide any comments to the Council that would be considered as part of the formal approval of the Treasury Management Policy, Treasury Management Strategy and Minimum Revenue Provisions Policy Statement.

This report would also be considered by Cabinet and Council at their meetings to be held on 10 February and 3 March 2022 respectively.

Members asked questions/commented on the following issues:

·       In respect of the Treasury Management Strategy and credit risk, how the Council would only invest with institutions of high credit quality that met certain criteria such as “are non-UK and domiciled in a country which has a minimum sovereign Long-Term rating of AA-“; and how such criteria aligned with the Council’s approval of ethical investment statements and principles

·       Due diligence undertaken regarding tax avoidance issues and how the Council’s Treasury Management advisors ensured that the Council’s investments accorded with policies to prevent this

·       The use of derivatives as a financial instrument for the management of risks and their compliance with the Council’s approval of ethical investment statements and principles

·       How financial organisations were aware of local authorities being mindful to invest ethically and how such organisations tailored their products accordingly

·       The need for a clear audit process to ensure the transparency of investments

·       Whether the Council had more to gain or lose with interest rates being very low

·       The impact of inflation on Council budgets and capital schemes    

RESOLVED:

That the report setting out the proposed policies and strategy documents which include the objectives and operation of the Council’s Treasury Management functions, the manner in which the Council will manage its investments and the methodology used to set aside revenue provision for the repayment of debt be noted.