“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
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.
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.
That the proposed borrowing strategy for the 2018/19 financial year comprising:
That all of the above to operate within the prudential limits set
2017/18 (as summarised in paragraphs 128 to 130; and as set out in full at Appendix 8 to the report), be adopted.