Issue - meetings

A report was received from the Executive Member for Finance setting out the 2013/14 Treasury Strategy Statement and Annual Investment Strategy, which also included information in respect of the setting of prudential indicators.

Members were advised that the report set out the Council’s policy in respect of treasury management and, in particular, the principles for managing the sophisticated and complicated cash flow arrangements for the Authority.  The principal aim of the treasury management strategy was to ensure security of capital and liquidity for the Council’s investments.

The Head of Finance and Performance stated that Officers worked closely with SECTOR, the Council’s Treasury Management advisors in considering a range of Investment opportunities that might enhance the returns being made by the Authority.  Members advised that there was always a balance that had to be struck between risk and investment return.

The Committee Chairman commented on the current bank base rate and when this might increase from the current 0.5%.  The Head of Finance and Performance stated that SECTOR’s current view was that the 0.5% current rate was not expected to start increasing until quarter 1 of 2015, despite inflation currently being well above the Monetary Policy Committee’s inflation target.

Members were advised that there were always fine judgements for Officers to make in terms of treasury management.  Officers had to oversee a varied portfolio of risk to enhance the best available investment return for the Authority.

In respect of a query from Councillor M Pope in relation to which investment portfolios were best for the Authority, the Head of Finance and Performance explained the basis of the Investec Fund and the rationale behind the recent decision in opening a new Money Market Fund.

Members received the report.

RESOLVED – that the2013/14 Treasury Management Strategy Statement and Annual Investment Strategy and the prudential indicators be received.