Issue - meetings

Treasury Management Strategy Statement 2023/24

Meeting: 31/01/2023 - Cabinet (Item 7)

7 Treasury Management Strategy Statement 2023/24

Report of the Chief Executive


Supporting documents:


Councillor Nick Botterill, Cabinet Member for Finance, Development Management and Strategic Planning, presented the report which proposed the Treasury Management Strategy for 2023/24. The report included information about:


·          Prudential and Treasury Indicators for the next three years

·          Debt management decisions required for 2023/2024 that do not feature within the Prudential or Treasury Indicators (paragraphs 57 to 60)

·          Minimum Revenue Provision Policy 2023/2024; and

·          Annual Investment Strategy for 2023/2024


Councillor Graham Wright, Chairman of the Overview and Scrutiny Management Committee confirmed that the Committee considered the report at its meeting on 24 January 2023, raising issues such as the impact of higher interest rates, capital expenditures and cashflow management. The Financial Planning Task Group had looked at the report in greater depth. 


Councillor Gavin Grant, Vice-Chairman of the Financial Planning Task Group commented on the report. He thanked the Cabinet Member and S151 Officer for providing answers to the Task Group on a number of matters. He commented on those elements of the capital programme funded by government grant and those subject to loans taken by the council, and any implications this had on the council’s treasury management.


Councillor Ian Thorn sought additional details on the report. In response to queries it was confirmed advice was received from external advisors though any decisions on treasury management were taken by the council. He asked about management through money market funds, where it was stated that due to interest rate rises banks were more competitive than before. He also sought clarity on lender option borrow option loans.


At the conclusion of discussion, it was then,




To recommend that the Council:


1)    Adopt the Minimum Revenue Provision Policy (paragraph 26 – 28)


2)    Adopt the Prudential and Treasury Indicators (paragraphs 17 – 25, 40 – 46 and Appendix A)


3)    Adopt the Annual Investment Strategy (paragraph 63 onwards).


4)    Delegate to the Corporate Director of Resources & Deputy Chief Executive (S151 Officer) the authority to vary the amount of borrowing and other long-term liabilities within the Treasury Indicators for the Authorised Limit and the Operational Boundary


5)    Authorise the Corporate Director of Resources & Deputy Chief Executive (S151 Officer) to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long-term portfolio


6)    Agree that short term cash surpluses and deficits continue to be managed through temporary loans, deposits and money market funds


7)    Agree that any surplus cash balances not required to cover borrowing are placed in the most appropriate specified or non-specified investments, particularly where this is more cost effective than short term deposits; and delegate to the Corporate Director of Resources & Deputy Chief Executive (S151 Officer) the authority to select such funds


8)    Agree the revised Investment Policy (paragraph 70)


9)    Agree the revised Creditworthiness Policy (paragraph 77)


Reason for Decision:


To enable the Council to agree a Treasury Management Strategy for 2023/24 and set Prudential Indicators that comply with statutory guidance and reflect best practice.