Decision details

Treasury Management and Capital Strategies 2020/21 - 2024/25

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

It is expected that the Treasury Management Strategy for 2020/21 – 2024/25 and Capital Strategy for 2020/21 – 2033/34, will be approved by Council on 25 February 2020. The Strategies ensure that the Council have robust arrangements for investing and only borrows where it is appropriate and affordable.

Included in the report is the recommendation that council approve the Authorised and Operational Borrowing limits.

Decisions:

Summary

 

The Finance and Resources Portfolio Holder presented a report setting out the Council’s Treasury Management Strategy for 2020/21 to 2024/25 and the Capital Strategy for 2020/21 – 2033/34. The Strategies had been updated to reflect the 2019/20 Budget and Capital Programme.

 

The strategies fulfilled five key legislative requirements relating to the setting of prudential indicators, the Council’s Minimum Revenue Provision (MRP) Policy, the Treasury Management Strategy Statement the Investment Strategy and the Capital Strategy, details of which were provided.

 

The report reflected the budget proposals which had been approved for consultation by Cabinet on 20 December 2019.

 

The Treasury Management Strategy was based on the proposed Capital Programme for 200/21 – 2024/25 which had been considered at Minute CEX/87 above.

 

The Capital Strategy included potential capital expenditure not currently in the proposed Programme and arising from the review of Council Assets in 2018/19, adjusted for any proposal brought as part of the 2020/21 Capital Programme.  The resulting indicators in the Capital Strategy were, therefore, higher as it included potential expenditure and borrowing which might not arise, depending on future decisions around service delivery.  For example, the 2020/21 Capital Programme included a programme of works to the shopping centre car park which would extend its life beyond the Capital Strategy timeframe.  This had resulted in £12m of spend for 2029-30 – 2033/34 being removed from the longer term Programme.  The Capital Strategy would assist in ensuring that the Council had funds available in the future to meet future opportunities which might arise.  It also considered organisational issues, including how the Capital Programme would be prioritised and considerations, including capacity to deliver.

 

The report had also been considered by the Overview and Scrutiny Committee on 17 January 2019.

 

Decision

 

RESOLVED – That the Treasury Management and Capital Strategies and the authorised borrowing limits within the report be noted and recommended to Council for approval.

 

Reasons for Decision

 

These arrangements enable the priorities of the Council Plan to be achieved.  The Strategies ensure that the Council has robust arrangements for investing and that it only borrows where it is appropriate and affordable.

 

Alternative Options Considered and Rejected

 

No alternative options are proposed.  The Treasury Management Framework, in particular, is driven largely by legislation and external guidance and reflects the 2018/20 budget.

Report author: Claire Read

Publication date: 07/02/2020

Date of decision: 05/02/2020

Decided at meeting: 05/02/2020 - Cabinet

Effective from: 17/02/2020

Accompanying Documents: