Decision details

That Council be recommended to -

(1) Note the Treasury Management Annual Report for 2016/17.

(2) Agree the following changes to the Council’s Treasury Management Strategy –

(i) Inclusion of a secured loan that helps deliver the Council’s housing objectives, as detailed in section 3.5.2 of the report;

(ii) An increase to the limit for pooled investment schemes to £80m as detailed in section 3.5.3;

(iii) A reduction to the counterparty rating criteria for Housing Associations to A- as detailed in section 3.5.4;

(iv) A temporary increase in counterparty limit with Lloyds Bank as detailed in section 3.5.5  

(3) Approve the actual prudential indicators on the report.

The Annual Treasury Management report ensures that the Council is implementing best practice in accordance with the CIPFA Code of Practice for Treasury Management. The Council’s investment options have reduced in recent years, and the investment strategy has been broadened to mitigate this, but some further changes are required.