Decision details

Treasury Management Strategy 2018/19

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


This report sets out how the County Council plans to manage its investment and borrowing activity in the coming year.


“The UK economy continues to face uncertainties, as the UK government looks to move towards negotiations on trade as part of its exit from the European Union (EU). In the face of these uncertainties, we consider our low risk treasury management strategy remains the most prudent approach. Therefore we will continue to invest carefully and look to maximise the use of our cash instead of borrowing, to save money.”


Mike Sutherland, Cabinet Member for Finance


Reasons for the Decision – The Local Government Act 2003 requires a local authority to have regard to the Prudential Code and to set Prudential Indicators for the next three years to ensure that its capital investment plans are affordable, prudent and sustainable. The Prudential Indicators are approved as part of the Medium Term Financial Strategy (MTFS).  The Treasury Management Strategy is a key element of the MTFS as the planned capital expenditure programme drives the borrowing required.


Decision – (a) That it be agreed that the 2018/19 Treasury Management Strategy be prepared based on existing regulations, with amendments taking place in the half year report, once the new CIPFA Codes (Prudential Code and Treasury Management Code), and DCLG Guidance (on Local Government Investments and on Minimum Revenue Provision) have been published.


(b) That, in accordance with the regulations, it be recommended to the County Council, at its meeting on the 22 March 2018, that the Annual Investment Strategy (AIS) 2018/19 (detailed in paragraphs 38 to 89 and Appendices 2 and 4of the report) be adopted.


(c) That, as required by the existing guidance, the following policies (as described in paragraphs 117 to 127 to the report) be approved;


i) reviewing the strategy;

ii) the use of external advisers;

iii) investment management training; and

iv) the use of financial derivatives.


(d) That the proposed borrowing strategy for the 2018/19 financial year comprising:


  • maximising the use of cash in lieu of borrowing as far as is practical;
  • the ability to borrow new long term loans where deemed appropriate;
  • a forward borrowing strategy that will not be used in 2018/19;
  • the use of cash to repay loans early, subject to market conditions; and
  • a loan rescheduling strategy that is unlimited where this re-balances risk.


be approved.


(e) That all of the above to operate within the prudential limits set out in Appendix 5 and to report to the Cabinet Member for Finance and Corporate Matters with respect to decisions made for raising new long term loans, early loan repayment and loan rescheduling.


(f) That, in accordance with regulations, it also be recommended to the County Council that the Minimum Revenue Provision 2017/18 (as summarised in paragraphs 128 to 130; and as set out in full at Appendix 8 to the report), be adopted.

Report author: Johirul Alam

Publication date: 18/01/2018

Date of decision: 17/01/2018

Decided at meeting: 17/01/2018 - Cabinet

Effective from: 24/01/2018

Accompanying Documents: