Agenda item

(To receive a report by Karen Tonge, Treasury Manager, which invites the Board to consider a report on the Treasury Management Strategy Statement 2020/21, including the Annual Investment Strategy for Treasury Investments 2020/21, which is due to be considered by the Leader of the Council on 20 March 2020. The views of the Board will be reported to the Leader of the Council as part of his consideration of this item)

Consideration was given to a report by the Treasury Manager, which invited the Board to consider a report on the Treasury Management Strategy Statement 2020/21, which was due to be considered by the Leader of the Council (Executive Councillor for Resources and Communications) on 20 March 2020.

The Board was informed that there had not been any major changes to the Treasury Management Strategy from the year before and there were no inflation concerns over the next 12 months.

Members were referred to the Executive Councillor report for a breakdown of each of the strategies.

The Director (Link Asset Services) commented that the overall strategy and parameters set out in the report were appropriate based on current knowledge and assessment that had been made for the future and based on the current economic and interest rate background. 

The Director (Link Asset Services) advised that the interest rate outlook lends weight to continuing with LCC's proposed rate of internal borrowing. Overall, the Director (Link Asset Services) suggested that the Council was in good stead for the year ahead.

The Executive Director – Resources was of the view that the strategy was sensible and felt that the positive comments by the Director (Link Asset Services) had provided assurance to the Board that the strategy was within normal practice.

Members considered the report and during the discussion the following points were noted:

·         Assurance was provided by Link Asset Services that the Treasury Management Strategy Statement and Annual Investment Strategy for Treasury Investments 2020/21 was appropriate and in line with other local authorities.

·         An agreement had been in place with the Pension Fund since 2010, to pool pension fund cash with the Council's investments. Treasury investments included an element of pension fund cash and the Pension Fund received a pro rata amount of interest back for its element of investment.

RESOLVED:

1.    That the Board support the recommendation to the Leader of the Council (Executive Councillor for Resources and Communications) as set out in the report;

            That a summary of the comments made above be passed to the Leader of the Council in relation to this item.