Issue - meetings

Cabinet, at its meeting on 15 February 2024, will consider the attached report of the head of finance on the council’s treasury management and investment strategy for 2024/25.

Cabinet’s recommendations will be circulated to all members prior to the Council meeting. 

Council considered the head of finance’s report on treasury management and investment strategy for 2024/25 which set out Cabinet’s recommendations, made at its meeting on 15 February 2024.

The Joint Audit and Governance Committee, at its meeting on 30 January 2024, had supported the draft strategy and had recommended it to Cabinet, along with approving the prudential indicators and limits, approving the annual investment strategy and lending criteria, and approving the Environmental, Social and Governance (ESG) policy.

Councillor Barker, the Cabinet member for finance and property assets, introduced the report and Cabinet’s recommendations. He highlighted that there were no changes to the counterparty selection in the strategy, although there had been a suggested inclusion of an environmental, social, and governance (ESG) policy that would be a factor in determining the council’s investments. Councillor Barker emphasised that the council understood the importance of ESG factors, and that they would be taken into account in the council’s investment decision, noting that the prioritisation of security, liquidity, then yield remained central to the council’s investment strategy.

Councillor Barker notified Council about an additional recommendation Cabinet made, to note that the section 151 officer had confirmed that he would conduct a review of investment options with the council’s treasury advisors, Link, accounting for ESG factors, and that that the report would be brought to the Joint Audit and Governance Committee.

Council was satisfied with the treasury management and investment strategy for 2024/25 and agreed that it should be approved.

RESOLVED: to

1.       approve the treasury management strategy 2024/25, as set out in Appendix A to the head of finance’s report to Cabinet on 15 February 2024;

2.       approve the prudential indicators and limits for 2024/25 to 2026/27, as set out in Appendix A of the report;

3.       approve the annual investment strategy 2024/25, as set out in Appendix A of the report, and the lending criteria detailed in table 6; and

4.       approve the Environmental, Social and Governance Policy, as set out in Appendix E to the report. 

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the treasury management and investment strategy for 2024/25.  The strategy set out how the council’s treasury service supported the financing of capital investment decisions and how its treasury management function operated.  The strategy was required to include three parts:

·       prudential and treasury indicators, within which the council must operate;

·       an annual investment strategy; and

·       a minimum revenue provision policy statement. 

The Joint Audit and Governance Committee had recommended Cabinet to approve:

·       the treasury management strategy 2024/25;

·       the prudential indicators and limits for 2024/25 to 2026/27; 

·       the annual investment strategy 2024/25 and the lending criteria; and 

·       the new Environmental, Social and Governance Policy.  

The Cabinet member for finance welcomed the report and the Joint Audit and Governance Committee’s recommendations.  He welcomed the addition of  new environmental, social and governance policy, which would help assess potential investment options, once the priorities of security, liquidity, and yield has been assessed. 

The Cabinet member also proposed an additional recommendation to note that the section 151 officer had confirmed that he would conduct a review of investment options with the council’s treasury advisors, Link, and would report to Joint Audit and Governance Committee, the review to include the latest analysis on environmental, social and governance investment options. 

Cabinet supported the recommendations. 

RESOLVED: to

(a)        note the treasury management strategy 2024/25, prudential indicator limits and annual investment strategy, as set out in Appendix A to the head of finance’s report to Cabinet on 15 February 2024;

(b)        note the Environmental, Social and Governance Policy, as set out in Appendix E of the report; and

(c)        note that the section 151 officer has confirmed that he will conduct a review of investment options with the council’s treasury advisors Link and, in line with the Constitution, will report to Joint Audit and Governance Committee, the review to include the latest analysis on environmental, social and governance investment options;

RECOMMENDED to Council to:

(d)        approve the treasury management strategy 2024/25, as set out in Appendix A to the head of finance’s report to Cabinet on 15 February 2024;

(e)        approve the prudential indicators and limits for 2024/25 to 2026/27, as set out in Appendix A of the report;

(f)         approve the annual investment strategy 2024/25, as set out in Appendix A of the report, and the lending criteria detailed in table 6; and

(g)       approve the Environmental, Social and Governance Policy, as set out in Appendix E to the report.