Issue - meetings

Treasury strategy

Meeting: 16/02/2023 - Council (Item 55)

55 Treasury Management and Investment Strategy 2023/24 pdf icon PDF 896 KB

The Joint Audit and Governance Committee, at its meeting on 31 January 2023, considered the report of the head of finance on the council’s treasury management and investment strategy for 2023/24. A revised table 6 was circulated at the meeting. The committee made recommendations to Cabinet to approve the treasury management strategy, prudential indicators, and annual investment strategy.

 

Cabinet considered the recommendations at its meeting on 2 February 2023 and made recommendations to Council to approve the treasury management strategy, prudential indicators, and annual investment strategy.

 

The report of the head of finance, which incorporates the amended table 6, is attached

 

RECOMMENDATION: to

 

1.    approve the treasury management strategy 2023/24, as set out in appendix A to the head of finance’s report to Council on 16 February 2023;

 

2.    approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and

 

3.    approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in table 6 in appendix A to the report.

 

Minutes:

Council considered the head of finance’s report on a draft treasury management and investment strategy for 2023/24 which set out Cabinet’s recommendations, made at its meeting on 2 February 2023. The Joint Audit and Governance Committee, at its meeting on 31 January, had supported the draft strategy and had recommended it to Cabinet, along with approving the prudential indicators and limits, and approving the annual investment strategy and lending criteria. 

 

Councillor Barker, the Cabinet member for finance, introduced the report and Cabinet recommendations. He highlighted that the proposed strategy for 2023/24 included the following changes:

  • amendments to individual maximum counterparty limits, increasing the limits for LVNAV &VNAV Money Market Funds to £30 million
  • amendments to the minimum lending criteria - an increase in the minimum asset value criteria for non-rated building societies from assets over £1 billion to assets over £2 billion 

 

Both Cabinet and the Joint Audit and Governance Committee had supported the strategy together with approving the prudential indicators and limits and approving the annual investment strategy and lending criteria. 

 

Some councillors expressed concern that, in their view, the strategy did not take sufficient account of environmental, social and governance (ESG) issues with continued investments in arms, tobacco, oil and certain financial institutions. They expressed the view that more weight should be given to ESG issues which support the council’s values and aims.

 

RESOLVED:

 

1.             approve the treasury management strategy 2023/24 set out in appendix A to the head of finance’s report to Council on 16 February 2023;

2.             approve the prudential indicators and limits for 2023/24 to 2025/26 as set out in, appendix A to the report;

3.             approve the annual investment strategy 2023/24 set out in appendix A to the report,and the lending criteria detailed in table 6.

 


Meeting: 02/02/2023 - Cabinet (Item 72)

72 Treasury management and investment strategy 2023/24 pdf icon PDF 897 KB

To consider the head of finance’s report. 

Additional documents:

Minutes:

Cabinet considered the head of finance’s report on a draft treasury management and investment strategy for 2023/24.  This set out how the council’s treasury service would support the financing of capital investment decisions, and how treasury management operated day to day.  The strategy also set out the prudential indicators, providing limits within which the treasury function must operate. 

 

The Cabinet member for finance highlighted that the proposed strategy for 2023/24 included the following changes,which Cabinet was asked to recommend to Council:

·       amendments to individual maximum counterparty limits, increasing the limits for LVNAV &VNAV Money Market Funds to £30 million

·       amendments to the minimum lending criteria - an increase in the minimum asset value criteria for non-rated building societies from assets over £1 billion to assets over £2 billion 

 

Cabinet noted that the Joint Audit and Governance Committee had supported the draft strategy and had recommended it to Cabinet, along with approving the prudential indicators and limits, and approving the annual investment strategy and lending criteria. 

 

Cabinet supported the proposed changes to the strategy. 

 

RECOMMENDED to Council to:

 

(a)       approve the treasury management strategy 2023/24, as set out in appendix A to the head of finance’s report to Cabinet on 2 February 2023;

 

(b)       approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and

 

(c)        approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in the amended table 6 to appendix A of the report. 


 

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