Issue - meetings

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance and Devolution.

The Leader of the Council  and Cabinet Member for Policy, Finance & Devolution (Councillor Alex Ganotis) submitted the Treasury Management Strategy and Annual Investment Strategy, Mid-Year Review Report 2017/18 (copies of which had been circulated).

RESOLVED - That the mid-year review of the Council’s Treasury Management Strategy and Annual Investment Strategy for 2017/18 be received in line with best practice guidelines, and noted:-

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

·         the revised interest rate forecasts for Public Works Loan Board rates over the short and medium term which would drive the Council’s long-term borrowing strategies going forward; and

·         that investments with Local Authorities as identified in the Treasury Management Strategy Report, also includes Combined Authorities and other government public authorities, for example, Police, Fire and Waste authorities and as such the minimum credit criteria and investment limits would be applied in the same way.

To consider a report of the Leader of the Council and Cabinet Member for Finance, Policy & Devolution.

This report provides Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2017/18 approved by Council on 23 February 2017 and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

There are no key changes required to the Treasury Management and Capital strategies for 2017/18, which continue to be relevant and effective.  Interest rate forecasts (explained in Section 8) engendered by the current economic situation (given in Section 13) of the report, will lead the Council’s investment and borrowing strategies for the remainder of the financial year.   

Cabinet is asked to recommend to the Council Meeting that it:

·         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.

·         note that investments with Local Authorities as identified in the original Treasury Management Strategy Report (TMSS), also includes Combined Authorities and other government public authorities, for example, Police, Fire and Waste authorities and as such the minimum credit criteria and investment limits will be applied in the same way.

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

The Leader of the Council and Cabinet Member for Policy, Finance and Devolution submitted a report (copies of which had been circulated) providing the Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2017/18, 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 highlighted the increase in interest rates announced by the Bank of England that had taken place since publication of the report, but stated that the Council’s treasury management assumptions had included an expectation of such rises. The impact of these changes was likely to be that the Council considered borrowing over longer periods to improve cost effectiveness of its borrowing.

The Leader highlighted changes to CIPFA Code of Practice that would require the Council to report on non-treasury investments that provided financial returns, although this would have no effect on the Council’s financial position.

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

RESOLVED - That the Council Meeting be recommended to receive the Treasury Management Strategy and Annual Investment Strategy 2017/18 Mid-Year Review Report and

·         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

·         note that investments with Local Authorities as identified in the original Treasury Management Strategy Report (TMSS), also includes Combined Authorities and other government public authorities, for example, Police, Fire and Waste authorities and as such the minimum credit criteria and investment limits will be applied in the same way.

To consider a report of the Borough Treasurer.

This report provides Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2017/18.

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

Officer contact: Lorna Soufian on 0161 474 4026 or email: 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 and Annual Investment Strategy for 2017/18.

RESOLVED – That the report be noted and the Cabinet and Council Meeting be recommended to approve the recommendations.