Issue - decisions

Treasury management and investment strategy 2016/17 to 2018/19

11/02/2016 - Treasury management strategy 2016/17 to 2018/19

Cabinet considered the head of finance’s report on the council’s treasury management strategy for the period 2016/17 to 2018/19.  The strategy set out how the council’s treasury service operated, how it would support capital investment decisions, and also set limits on treasury management activity governed by the prudential indicators.  The report included three elements required by legislation:

·         the prudential indicators required by the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code for Capital Finance in Local Authorities

·         the annual investment strategy that sets out the council’s criteria for selecting counterparties and limiting exposure to the risk of loss on its investments.  This strategy was in accordance with the government department of Communities and Local Government’s investment guidance, and formed part of the treasury management strategy

·         a statutory duty to approve a minimum revenue provision policy for 2016/17


It was a requirement of the CIPFA Treasury Management Code 2011 that this report was approved by the Council annually. 


Cabinet noted that the Joint Audit and Governance Committee had recommended the adoption of the strategy.  Cabinet concurred. 


RECOMMENDED to Council to:


(a)       approve the treasury management strategy 2016/17 set out in appendix A to the head of finance’s report to Cabinet on 4 February 2016;


(b)       approve the prudential indicators and limits for 2016/17 to 2018/19 as set out in table 2, appendix A to the head of finance’s report;


(c)       approve the annual investment strategy 2016/17 set out in appendix A (paragraphs 23 to 57) and the lending criteria detailed in table 5 to the head of finance’s report.