Issue - meetings

Report FSD24016

The report summarised treasury management activity during the third quarter of 2023/24.  Investments as at 31^st December 2023 totalled £370.1m (£388.7m at 31^st December 2022) and there was no outstanding external borrowing.

The report also included the Treasury Management Strategy and the Annual Investment Strategy for 2024/25, which were required by the CIPFA Code of Practice for Treasury Management in the Public Services to be approved by the Council.

The report also included Prudential Indicators (Annex 3 of Appendix 4) and the MRP (Minimum Revenue Provision) Policy Statement (paragraph 2.4 of Appendix 4), both of which required the approval of Council. For clarification, the Council was required by statute to agree and publish prudential indicators, primarily to confirm that the Council’s capital expenditure plans were affordable and sustainable.

The report ensured that the Council was implementing best practice and complying with the requirements of the CIPFA Code of Practice for Treasury Management.

During discussion, the Committee discussed the advantages and disadvantages of investing in other Local Authorities.  The Chairman noted that Councils were not permitted to default on loans and Bromley could therefore expect a return on its investment.  The Director of Finance explained that, through a capitalisation direction, Councils could be given permission to borrow to service loans through the public works loan board.  The Director highlighted that careful consideration was given to whether or not to invest in other local authorities and often investments were short term with a cautious approach being taken.

RESOLVED: That the Portfolio Holder be recommended to

1)  Note the Treasury Management performance for the third quarter of 2023/24;

2)  Recommend that Council agrees to adopt the Treasury Management Statement and the Annual Investment Strategy for 2024/25 including:

(i)  the Prudential Indicators for the period 2024/25 to 2026/27 (Annex 3 of Appendix 4); and

(ii)  the Minimum Revenue Provision (MRP) Policy Statement (paragraph 2.4 of Appendix 4).