Decision details

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Chief Officer (Resources) which set out the 2015/16 Treasury Management Framework for approval and referral on to Council.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinet may put forward alternative proposals or amendments to the proposed Strategy in Appendix A to the report, but these would have to be considered in light of legislative, professional and economic factors, and importantly, any alternative views regarding the Council’s risk appetite.  As such no further options analysis is available at this time.

Furthermore, the Strategy must fit with other aspects of Cabinet’s budget proposals, such as investment interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators. 

The Officer preferred option is to approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council.  This is based on the Council continuing to have a low risk appetite regarding the security and liquidity of investments particularly, but recognising that more flexibility should help improve returns, whilst still effectively mitigating risk.  It is stressed in terms of treasury activity, there is no risk free approach.  It is felt though that the measures set out in the report provide a better, more flexible framework within which to work over the coming year.

Councillor Bryning proposed, seconded by Councillor Hanson:-

“That the recommendation, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)          That the Finance Portfolio Holder be given delegated authority to finalise the Treasury Management Framework, as updated for Cabinet’s final budget proposals, for referral on to Council.

Officer responsible for effecting the decision:

Chief Officer (Resources)

Reasons for making the decision:

As part of the adoption of the CIPFA Code of Practice on Treasury Management it is a statutory requirement that the authority has a Treasury Management Strategy Statement and Investment Strategy.  The decision, seeks minor changes to the Council’s Treasury Management Policy, and fits with the proposed Medium Term Financial Strategy.