Issue - meetings

To consider a report of the Cabinet Member for Finance & Resources.

The purpose of this report is to inform the Cabinet on the operation and effectiveness of the council's Treasury Management function for quarter three of 2024/25.

The Treasury Management Strategy, Annual Investment Strategy and Minimum Revenue Provision Policy 2024/25 approved by Council on 22 February 2024, outlined that the council is required to receive and approve, as a minimum, three main reports each year, which incorporate a variety of polices, estimates and actuals. 

To supplement these central reports which are tabled at Council, the Cabinet and CRMG are provided with treasury performance monitoring reports at quarter one and quarter three of the financial year. These reports detail activities undertaken, variations (if any) from agreed policies/practices and present treasury performance monitoring information. The reports, specifically, also comprise updated Treasury/Prudential Indicators.

This quarter three report therefore updates members with progress on the treasury and capital position of the Council.

The Cabinet is recommended to note the report, the treasury activity and recommend approval of any changes to the prudential indicators.

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

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) submitted a report (copies of which had been circulated) providing an update on the operation and effectiveness of the Council's Treasury Management function for quarter three of.

RESOLVED – (1) That the report and treasury activity be noted.

(2) That approval be given to any necessary changes to the prudential indicators.

To consider a report of the Director of Finance (Section 151 Officer).

The report updates members on treasury management activities in accordance with The Chartered Institute of Public Finance and Accountancy Code of Practice (CIPFA) for Treasury Management.

The Scrutiny Committee is recommended to note the report and treasury activity.

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

The Director of Finance (Section 151 Officer) submitted a report (copies of which had been circulated) updating members on treasury management activities in accordance with The Chartered Institute of Public Finance and Accountancy Code of Practice (CIPFA) for Treasury Management.

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

The following comments were made/ issues raised:-

·         Members noted that inflation was on the rise and expected to return to a level of 2 per cent and asked about the potential impact in the event that inflation does not return to expected levels.

·         In response, it was stated that the current economic climate was volatile with inflation changing regularly. The council had confidence in its advisors and forecasts were regularly updated.

·         It was reported that all council borrowing was at a fixed rate and its strategy was to borrow on a short-term basis of between one and five years in order to manage risks related to inflation and interest rates.

·         Whilst interest rates were still expected to come down, international events might impact that forecast.

·         Members thanked the finance team for their work in looking after the council’s money.

·         It was reported that environmental, social and governance (ESG) considerations were currently mainly relevant to pension funds, and their impact upon financial markets was still in development.

RESOLVED – That the report and treasury activity be noted.