Issue - meetings

To consider a report of the Cabinet Member for Resources, Commissioning & 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 the Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21 approved by Council on  27 February 2020 and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

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

(2) That the revised interest rate forecasts for Public Works Loan Board 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 Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance.

This report provides Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21 approved by Council on  27 February 2020 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 2020/21 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 2020/21.

There are no key changes required to the Treasury Management and Capital strategies for 2020/21, 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.

The main report is very detailed and provides a full picture of all the variables and circumstances impacting upon the Council’s treasury management operation; consequently, a ‘key highlights’ summary report containing all of the prevalent points has also been provided. This can be found immediately before the full report for quick reference.

The Cabinet is asked to recommend that the Council meeting:

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

·         Notes the revised interest rate forecasts for Bank rate and PWLB rates over the short and medium-term, which will drive the Council’s long-term borrowing strategies going forward.

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

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) providing the Cabinet with a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21 approved by Council on  27 February 2020 and has been prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

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

(2) That the revised interest rate forecasts for Bank rate and 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 Corporate Director (Corporate and Support Services) and Deputy Chief Executive

The report sets out a mid-year review of the Council’s Treasury Management Strategy Statement and Annual Investment Strategy for 2020/21, approved by the Council on 27 February 2020, and prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

The Scrutiny Committee is invited to comment on the report.

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

The Corporate Director (Corporate and Support Services) and Deputy Chief Executive submitted a report (copies of which had been circulated) setting out a mid-year review of the Council’s Treasury Management Strategy statement and Annual Investment Strategy for 2020/21, approved by the Council on 27 February 2020, and prepared in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services.

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

The following comments were made/issues raised:-

·         A Member enquired whether, at a time of very low interest rates, the Council was using gilt-edged securities.

·         The requirements for borrowing during the financial year so far had been met by using short-term market loans from other Councils. The financial position of any lender was looked at closely.

RESOLVED – That the report be noted.