Issue - meetings

To consider a report of the Borough Treasurer.

The Leader of the Council (Policy, Finance & Devolution) (Councillor Alex Ganotis) submitted the Treasury Management Strategy and Annual Investment Strategy, Mid-Year Review Report 2016/17 (copies of which had been circulated).

RESOLVED – (1) That the Treasury Management Strategy and Annual Investment Strategy, Mid-Year Review Report 2016/17 report be received in line with best practice guidelines.

(2) That the treasury activity for the first half of the financial year and the revised interest rate forecasts for PWLB rates over the short and medium term, which will drive the Council’s long-term borrowing strategies going forward and also those for the UK Bank Rate, which have reduced budgeted investment earnings rates for 2016/17 and future years be noted.

To consider a report of the Leader of the Council (Policy, Finance & Devolution)

This report provides the Executive with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2016/17 approved by Council on 3 March 2016 and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

The report provides an economic update for the first six months of 2016/17 and details how this impacts upon the interest rate predictions and outlook provided in the initial strategy.  An overview is provided of more recent forecasts and developments in the financial markets and how these are affecting the Council’s investment portfolio and borrowing strategies for the current financial year.   A review is provided of the Council’s capital expenditure prudential indicators and compliance with Treasury and Prudential Limits for 2016/17.

There are no key changes required to the Treasury Management and Capital strategies for 2016/17, which continue to be relevant and effective; the only revision required at the midyear point of the financial year centres around adjusted interest rate forecasts (explained in Section 8) engendered by the current economic situation (given in Section 13) of the report, which gives rise to significant implications for the Council’s investment returns and borrowing strategies.  

The Executive is asked to recommend that the Council Meeting receive this report in line with best practice guidelines and

·         note the report and the treasury activity in the first half of the financial year, and

·         note the revised interest rate forecasts for PWLB rates over the short and medium term which will drive the Council’s long-term borrowing strategies going forward and also those for the UK Bank Rate which have reduced budgeted investment earnings rates for 2016/17 and future years.

Officer contact: Lorna Soufian, 0161 474 4026, lorna.soufian@stockport.gov.uk

The Leader of the Council (Policy, Finance and Devolution) submitted a report (copies of which had been circulated) providing the Executive with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2016/17, and providing an economic update for the first six months of the year and how this may impact on interest rate predictions and the outlook provided in the initial Strategy.

The Leader of the Council paid tribute to the hard work of those officers involved in Treasury Management.

RESOLVED - That the Council Meeting be recommended to receive this report in line with best practice guidelines and

·           note the report and the treasury activity in the first half of the financial year, and

·           note the revised interest rate forecasts for PWLB rates over the short and medium term which would drive the Council’s long-term borrowing strategies going forward and also those for the UK Bank Rate which had reduced budgeted investment earnings rates for 2016/17 and future years.

To consider a report of the Borough Treasurer.

This report provides the Executive with a mid-year review of the Council’s Treasury Management Strategy Statement (TMSS) and Annual Investment Strategy (AIS for 2016/17.

The Scrutiny Committee is asked to recommend the following to the Council meeting:

·         Note the report and the treasury activity in the first half of the financial year,

·         Note the revised interest rate forecasts for PWLB rates over the short and medium term, which will drive the Council’s long-term borrowing strategies going forward and also those for the UK Bank Rate, which have reduced budgeted investment earnings rates for 2016/17 and future years.

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

The Borough Treasurer submitted a report (copies of which had been circulated) providing the Scrutiny Committee with a mid-year review of the Council’s Treasury Management Strategy Statement (TMSS) and Annual Investment Strategy (AIS for 2016/17.

The Leader of the Council (Councillor Alexander Ganotis) and the Executive Councillor for Reform & Governance (Councillor David Sedgwick) attended the meeting to answer members’ questions.

RESOLVED – That the Council meeting be recommended to:

·         Note the report and the treasury activity in the first half of the financial year,

·         Note the revised interest rate forecasts for PWLB rates over the short and medium term, which will drive the Council’s long-term borrowing strategies going forward and also those for the UK Bank Rate, which have reduced budgeted investment earnings rates for 2016/17 and future years.