Agenda item

To receive a report from the Executive Director - Resources seeking approval of the Council’s Treasury Management Strategy 2021/22.

Council is asked to approve the strategy and to note that this was recommended to Council for approval by Cabinet at their meeting on 3 February 2021. 

Councillor Maguire moved and Councillor Caliskan seconded the report of the Executive Director Resources on the Treasury Management Statement 2021/22.

NOTED

1.            That this report had been recommended to Council by Cabinet at the meeting held on 3 February 2021.

2.            Councillor Maguire in proposing the report highlighted the following: 

·         The report sets out the treasury management strategy for the next ten years as well as the annual investment strategy for the year ending 31 March 2022.

·         It also included prudential indicators and minimum revenue provision statements.

·         It ensured that the capital investment plans were prudent affordable and sustainable, that the financing of the capital programme and cash flow were properly planned and that the cash balances were appropriately invested to generate optimum returns.

·         External auditors met officers regularly with to ensure that the financial indicators show that funds are being managed appropriately, and that the council was receiving good value for its investments 

3.            The comments of Councillor Hockney speaking on behalf of the majority opposition group in response: 

·         Concern about policies which implied a maximising of the Council’s cash which he felt were reminiscent of the problems experienced by Croydon.

·         Concern about the amount of money cut from front line services such as bin collection. 

·         Concern that the money spent on interest payments would increase year on year because of the amount that the Council was borrowing and that this would result in cuts to future front line services. 

·         Concern that it would take 77 years to pay off the debts and that residents would suffer. 

4.            Comments of the majority opposition group: 

·         The view that Council borrowing was spinning out of control and that interest rates were likely to rise in the future which would cost the Council more and mean that there was less to spend on front line services. 

·         Concern that it was predicted that interest charges would rise to £63million.

5.            Comments of the majority group members: 

·         That the strategy was accurate and reflected the Council’s commitment to transparency. 

·         Concern at the inconsistency of the opposition comments and their willingness to vote against every opportunity to invest in the future of the borough.

·         The failure of the opposition to mention the £600million which the Government had taken away from the Council over the last ten years, decimating the budget of the local authority.

·         The Labour administration was delivering for local residents.

·         The Council was legally obliged to set affordable budgets which it had done.  The budget plans were sound and had been judged to be so.

After the debate the report was put to the vote and agreed with the following result:

For:  38

Against:  19

Abstentions:  1

AGREED

1.            To approve the attached Treasury Management Strategy Statement for 2021/22 and to note the ten year treasury management forecast;

2.            To note the economic context and interest rate forecast (Appendices A and B);

3.            To approve the prudential indicators set out in AppendixD;

4.            To approve the Minimum Revenue Provision Statement (AppendixE); and

5.            To approve the Counterparty List and Limits set out in AppendixF.