Decision details

Treasury Management Strategy Statement 2020/21

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: Yes


The Cabinet gave consideration to a report of the Director of Finance which presented the strategy for 2020/21 Treasury Management activities including the Minimum Revenue Provision Policy Statement, the Annual Investment Strategy and Prudential Indicators together with linkages to the Capital Strategy.


Members were informed that the Council was required through regulations supporting the Local Government Act 2003 to ‘have regard to’ the Prudential Code and to set Prudential Indicators for the next three years to ensure that the Council’s capital investment plans were affordable, prudent and sustainable. It was also required to produce an annual Treasury Strategy for borrowing and to prepare an Annual Investment Strategy setting out the Council’s policies for managing its investments and for giving priority to security and liquidity of those investments.


The Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management 2017 (the Code) required the receipt by full Council of a Treasury Management Strategy Statement.


The Strategy for 2020/21 covered two main areas.


Capital Issues

      The Capital expenditure plans and the associated Prudential Indicators

      The Minimum Revenue Provision (MRP) Policy Statement


Treasury Management Issues:

      The Current Treasury Position

      Treasury Indicators which limited the treasury risk and activities of the Council

      Prospects for Interest Rates

      The Borrowing Strategy

      The Policy on Borrowing in Advance of Need

      Debt Rescheduling

      The Investment Strategy

      The Creditworthiness Policy

      The Policy regarding the use of external service providers.


The report outlined the implications and key factors in relation to each of the above Capital and Treasury Management issues and made recommendations with regard to the Treasury Management Strategy for 2020/21.


Cabinet noted that the Audit Committee, the body charged with the detailed scrutiny of Treasury Management activities considered the proposed Treasury Management Strategy report at its meeting on 20 January 2020. It was also presented to the Overview and Scrutiny Performance and Value for Money Select Committee on 23 January 2020. Both the Audit Committee and the

Overview and Scrutiny Performance and Value for Money Select Committee were content to commend the report to Cabinet.


 Options/Alternatives considered

The Council was required to comply with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management the Council and has no option other than to consider and approve the contents of the report. Therefore, no options/alternatives were considered.


RESOLVED -That the following be accepted and recommended to Council:

  1. Capital Expenditure Estimates as per paragraph 2.1.2;
  2. MRP policy and method of calculation as per Appendix 1;
  3. Capital Financing Requirement (CFR) Projections as per paragraph 2.2.4;
  4. Projected treasury position as at 31 March 2020 as per paragraph 2.3.3;
  5. Treasury Limits as per section 2.4;
  6. Borrowing Strategy for 2020/21 as per section 2.6;
  7. Annual Investment Strategy as per section 2.10 including risk management and the creditworthiness policy at section 2.11; and
  8. Level of investment in specified and non-specified investments detailed at Appendix 5.


Publication date: 11/02/2020

Date of decision: 10/02/2020

Decided at meeting: 10/02/2020 - Cabinet

Effective from: 19/02/2020

Accompanying Documents: