Issue - meetings

To consider a joint report of the Leader of the Council and Cabinet Member for Devolution and the Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) submitted a report (copies of which had been circulated) inviting the Council Meeting to consider the Treasury Management Strategy Statement, the Annual Investment Strategy and the Minimum Revenue Provision Policy 2020/21.

RESOLVED – (61 for) That approval be given to:-

·         The Minimum Revenue Provision Policy for 2020/21;

·         The Capital Expenditure forecasts and Capital Financing Requirement projections;

·         The Treasury Management Strategy 2020/21;

·         The Treasury and Prudential Indicators and limits 2020/21-2022/23;

·         The Annual Investment Strategy 2020/21.

To consider a joint report of the Leader of the Council and Cabinet Member for Devolution and the Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

This comprehensive report proposes the 2020/21 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, which are constructed in compliance with the CIPFA Treasury Management Code of Practice.

The Council has delegated the role of ensuring effective scrutiny of its Treasury Management Strategy to the Corporate, Resource Management and Governance Scrutiny Committee (CRMG).  As such, the views of CRMG were sought and any opinions or suggestions made have been taken into account when formulating the Council's Treasury Management Strategies for 2020/21.

The first part of the report details the Council’s Capital expenditure plans and Strategy which are a key driver to the long-term borrowing aspect of treasury management activity and strategy; these are reflected in a number of prudential and treasury indicators. 

The report develops to show how capital expenditure funded by prudential borrowing is subsequently charged against the Council’s revenue resources in the Minimum Revenue Provision (MRP) Policy Statement.

Fundamentals of the Council’s investment policy, approach to creditworthiness and investment strategies for 2020/21 are included in the Annual Investment Strategy statement.

The report provides an economic commentary and interest rate forecast, detailing likely scenarios for the economy and financial markets in 2020/21 based on current information. However given the volatility of sentiment and the UK’s uncertain Brexit position, there is no assurance at this stage as to what may occur in the coming weeks.  Predictions built into the report for interest rates have assumed that an agreement that there is an agreed deal on Brexit, including agreement on the terms of trade between the UK and EU, at some point in time. The result of the general election has removed much uncertainty around this major assumption.  However, it does not remove uncertainty around whether agreement can be reached with the EU on a trade deal within the short time to December 2020, as the prime minister has pledged.  At the time of writing, the Brexit situation in the UK remains ‘fluid’.  Adjustments to central interest rate forecasts as such may be made as the situation unfolds.  

A key highlights report is provided which summarises the main points of the more comprehensive report.

An Equalities Impact Assessment has been carried out on the Treasury Management Strategy; this is included at Appendix Six.

The Cabinet is asked to recommend that the Council Meeting approves:

·         The Minimum Revenue Provision Policy for 2020/21;

·         The Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         The Treasury Management Strategy 2020/21;

·         The Treasury and Prudential Indicators and Limits 2020/21-2022/23;

·         The Annual Investment Strategy (AIS) 2020/21.

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

The Leader of the Council and Cabinet Member for Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider the proposed 2020/21 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, constructed in compliance with the CIPFA Treasury Management Code of Practice.

RESOLVED – That in relation to the 2020/21 Treasury Management Strategy, Annual Investment and Minimum Revenue Provision Policy the Council Meeting be recommended to approve:-:-

·         the Minimum Revenue Provision Policy for 2020/21;

·         the Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         the Treasury Management Strategy 2020/21;

·         the Treasury and Prudential Indicators and Limits 2020/21-2022/23; and

·         the Annual Investment Strategy (AIS) 2020/21.

To consider a report of the Borough Treasurer.

This report seeks the views of Scrutiny Committee on the development of the Council’s Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy for 2020/21 prior to consideration by the Council Meeting on 27 February 2020.

The Scrutiny Committee are requested to comment on the report.

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

The Borough Treasurer submitted a report (copies of which had been circulated) seeking the views of the Scrutiny Committee on the development of the Council’s Treasury Management Strategy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy for 2020/21, to be considered for approval at the Cabinet Meeting on 4 February 2020.

The CIPFA Treasury Management in Public Services Code of Practice placed emphasis on the regular reporting of the treasury management strategy and performance and scrutiny of treasury management strategy and policy to a specific named body.

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

RESOLVED – That the report be noted.