Issue - meetings

(CSP: MEC & MEC1)

Purpose:  In compliance with the Local Government Act 2003, this report summarises the Council's borrowing limits as set out by CIPFA's Prudential Code, and recommends the Annual Investment and Borrowing Strategy for 2018/19.

Resolved to recommend that Council adopt the 2018/19 Investment and Borrowing Strategy.

This decision is not subject to call in as:

·      the item is due to be referred to Council for final approval.

therefore it will be implemented immediately.

Councillor Hilary Cole explained that agenda items 6 to 9 would be briefly introduced by Councillor Anthony Chadley as Portfolio Holder for Finance. However, debate of the items was not planned for the Executive as they would be debated and determined at the Council meeting on 1 March 2018. Questions of clarity could however be asked.

The Executive considered a report (Agenda Item 6) concerning the Council’s borrowing limits as set out by CIPFA’s Prudential Code and which recommended, for Council approval, the Annual Investment and Borrowing Strategy for 2018/19. The report also provided a forecast of the Council’s long term borrowing requirements.

Councillor Chadley explained that the implementation of the Strategy would be reviewed during the coming financial year by the cross-party Treasury Management Group of which Councillor Lee Dillon was a Member.

Councillor Dillon referred to paragraph 3.2 of the supporting information which raised the need for investments to satisfy a set of conditions and specifically the references made to credit ratings. Councillor Dillon felt that credit ratings should be clearly stipulated ahead of any investment being made. Councillor Chadley acknowledged this point and stated that he would look to update the Strategy in the way described, ideally in advance of the Council meeting.

Councillor Dillon then referred to the credit ratings and limits proposed for the different categories of investments. He noted that for NHS Trusts, investment was to be subject to an individual lending agreement which would require Executive approval. Councillor Dillon felt, for due diligence purposes, that the Treasury Management Group should also be involved in this decision. Councillor Chadley agreed to take this suggestion on board.

RESOLVED to recommend that Council adopt the 2018/19 Investment and Borrowing Strategy.

Other options considered: Not applicable.