Agenda item

(a)       That having reviewed the draft Treasury Management Strategy 2022/23, the Committee has no specific issues to be reported to Cabinet on 15 February 2022; and

(b)       That the Treasury Management 2021/22 quarterly update be noted.

The Corporate Finance Manager presented the draft Treasury Management Strategy 2022/23 and associated documents for review and recommendation to Cabinet, along with a quarterly update on Treasury Management activities for 2021/22 for information.

The Strategic Finance Manager reported no significant changes and highlighted key areas on the economic context, increased focus on borrowing, changes to counterparty limits and a continuation of the borrowing strategy.  In addition, work was ongoing with Arlingclose (the Council’s treasury management advisors) to explore investment options to support climate change and meet future requirements of the revised Treasury Management Code on which the Council was already mainly compliant.  The quarterly update for 2021/22 reported the position on investments at December 2021 along with long and short term borrowing portfolios.

Sally Ellis asked about the increase in investment limits with counterparties following the cessation of the Welsh Government (WG) Hardship Fund at the end of the financial year.

The Corporate Finance Manager said that the availability of supplementary grant funding after this period for aspects of the Hardship Fund would provide flexibility and that details of investments with low-risk counterparties formed part of quarterly updates to the Committee.  On a further question, the strategy reflected the need for continued long-term borrowing and such decisions were made as the need arose and with balanced judgement.  An update on borrowing activities since December would be included in the outturn report.

On changes introduced by WG to support a low carbon economy, the Strategic Finance Manager said that environmental, social and governance (ESG) investment opportunities were becoming more available and that officers were working closely with Arlingclose on this.

In response to comments from the Chairman on the climate change targets set by WG, the Strategic Finance Manager spoke about various activities across the Council to invest in carbon reduction schemes.  As suggested by Sally Ellis, the Chief Executive agreed that a future report would be shared with the Committee on progress with work under the Green Society and Environment theme to address climate change and decarbonisation challenges.

Allan Rainford asked about the impact of the interest rate forecast on long-term borrowing and the Capital Strategy.  The Corporate Finance Manager spoke about the prudent approach taken to budgeting for the central loans investment account and said that approval of the Capital Strategy and Capital Programme in December had allowed for revenue consequences to be built into the forecast prior to the final stage of budget-setting in February.  The Strategic Finance Manager provided clarification on new borrowing undertaken this year through the Invest to Save scheme.

Councillor Paul Johnson thanked officers for the detailed report which demonstrated the transparency of treasury management decision-making.

The recommendations were moved by Sally Ellis and seconded by Councillor Janet Axworthy.

RESOLVED:

(a)       That having reviewed the draft Treasury Management Strategy 2022/23, the Committee has no specific issues to be reported to Cabinet on 15 February 2022; and

(b)       That the Treasury Management 2021/22 quarterly update be noted.