Issue - meetings

To consider a report of the Deputy Chief Executive.

This report details the proposed development of the Council’s Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy for 2024/25, to be considered for approval at the Cabinet Meeting on 30 January 2024 and the Council Meeting on 22 February 2024.

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Lorna Soufianon 0161 474 4026 or email: lorna.soufian@stockport.gov.uk

The Deputy Chief Executive submitted a report (copies of which had been circulated) detailing the proposed development of the Council’s Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy for 2024/25, to be considered for approval at the Cabinet Meeting on 30 January 2024 and the Council Meeting on 22 February 2024.

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         Members commented on the overall impact of interest rates and asked what the difference was in terms of interest rates payments being currently made compared with those made five years ago. In response it was reported that in the 2023/24 financial year, the additional costs were between £1.5 and £2 million more than they had been in the previous year. Costs were expected to rise in 2024/25. The last time the council had taken out long-term borrowing, the costs had been fixed at 1.3 per cent compared to today’s rates of more than five per cent.

·         In light of the current rates of interest the council had recognised that it could not borrow long-term for all requirements and the current policy was to avoid long-term borrowing. The base rate was expected to soften over the coming 18 to 24 months which would impact upon the council’s investment decisions.

RESOLVED – That the report be noted.