Issue - meetings

To consider a report of the Cabinet Member for Resources, Commissioning and Governance.

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning and Governance (Councillor Tom McGee) submitted a report (copies of which had been circulated) providing a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2019/20.

RESOLVED – That:-

(1) The report and the treasury activity in the first half of the financial year be noted.

(2) 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 be noted.

To consider a report of the Borough Treasurer.

This report provides a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2019/20, approved by Council on 21 February 2019, 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 2019/20 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 2019/20.

There are no key changes required to the Treasury Management and Capital strategies for 2019/20, which continue to be relevant and effective. 

The Scrutiny Committee is invited to consider and comment on the report prior to its submission to Cabinet and the Council Meeting.

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

A representative of 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 2019/20, approved by Council on 21 February 2019, and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services. The report highlighted that there were no key changes required to the Treasury Management and Capital strategies for 2019/20, which continued to be relevant and effective.

The Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) attended the meeting to respond to questions from the Scrutiny Committee.

The following comments were made/ issues raised:-

Further information was sought on the implications of the increase in the Public Works Loan Board (PWLB) lending rate on the Council’s borrowing. In response it was stated that there was little impact on the Council as the last tranche of borrowing had taken place in August prior to the increase and there was no immediate need to undertake any further borrowing. All options would be considered in the event that more borrowing was needed but it was increasingly likely that the PWLB would be a last resort lender for many local authorities. A note of caution was sounded that in light of the PWLB rate increase the market rate may converge on that rate, making borrowing more expensive. Further comment w

The hard work and diligence of the Council’s Treasury Management team was commended.

RESOLVED – That the report be noted.