Agenda and draft minutes

Virtual, Treasury Management Panel - Wednesday 4 November 2020 11.00 am

Venue: Virtual Meetings - This meeting will be held virtually. Details of how to access the meeting on YouTube are contained in the meeting page, along with the agenda and papers.. View directions

Note: This meeting may be viewed on YouTube by highlighting and opening the following link: 

No. Item


Apologies for Absence


The Chairman welcomed Panel Members to the first virtual meeting of the Treasury Management Panel (TMP) via the Zoom platform, and confirmed that proceedings were being streamed live to the public via YouTube.


He gave a special welcome to Councillor Oakley-Dow, attending his first Panel proceedings, and noted the presence of the Cabinet Portfolio Holder for Finance Councillor Lloyd, in his capacity as Observer. He welcomed Mrs. Phiroza Katrak from Arlingclose Ltd (External Treasury Advisor), and noted the presence of the Strategic Director (Internal Services), the Head of Finance, the Senior Finance & Procurement Officer, the Transformation Manager and the Committee Co-ordinator.


There were no apologies for absence.


Declarations of Interest

To receive declarations of interest from Members including the terms(s) of any Grant(s) of Dispensation from the Audit Board or Strategic Director (Internal Services).


There were no declarations of interest.


Confirmation of the Unclassified Minutes of the Panel meeting held on 8 November 2019 pdf icon PDF 174 KB




1.     That Members confirm as accurate, the Unclassified Minutes of the Panel meeting held on 8 November 2019.




In accordance with Section 100A (4) of the Local Government Act 1972 (as amended), the Panel went into closed session to consider EXEMPT agenda Items A and B.


Confirmation of EXEMPT Minutes of the Panel meeting held on 8 November 2019




1.     That Members confirm as accurate, the EXEMPT Minutes of the Panel meeting on 8 November 2019.


Treasury Management Review


Phiroza Katrak gave an update on the UK and world economy which included the impact following the US presidential election, the impact from the Covid-19 pandemic on UK unemployment, the Bank of England bank rate, UK growth and the wider world economy. She presented the Arlingclose and market forecast for the UK official bank rate.


Phiroza reminded Panel Members of the now wider definition of treasury management - “management of the Council’s investments (which includes both financial and non-financial assets held primarily for financial returns such as investment property), identification, management and effective control of the associated risks and pursuit of optimum performance”. All decisions taken by the Council were made under that framework.


Phiroza presented the Council’s current borrowing position and Sarah Martin confirmed that the Council would be making payment of £5m in 2022 to pay back the full maturity loan which was due to expire on 1 February 2022.  The Council would continue to make twice yearly payments on all other loans until they were extinguished. The Panel took note of the current exit costs if the Council wanted to redeem any of the loans earlier, and it was agreed that this was not the plan at this time.


There was an update on the Public Works and Loans Board (PWLB) consultation on their lending, which had closed in July, with results still awaited but expected soon. The Council fed into this consultation process which considered whether the PWLB would stop lending to Local Authorities which were borrowing purely for yield (to invest in commercial properties purely to retain the income from these). The consultation proposed reducing the current lending rate, having increased it in October 2019 to try to curb the increase that had been seen in debt for yield borrowing. 


Catherine Bailey gave an update on the in-house investments and hi-lighted the contents of the treasury management half year report.


Phiroza gave an update on the externally managed pooled funds and their performance to date. She advised that the CCLA property fund had temporarily suspended investments/redemptions earlier in the year, due to the uncertainty over property valuations during the initial stage of the Covid-19 pandemic in the UK, and subsequent lockdown of the country. The fund had lifted this temporary suspension in September, and it was now accepting investments and redemptions, but at least three months’ notice was required for the withdrawal of funds. 


Phiroza suggested that the Council should look to set a very prudent investment income budget for 2021/22, given the lower returns being experienced due to the pandemic and the lowering of the UK bank rate.


The Chairman and Panel Members conveyed their gratitude for the late Graham Harris’s prudent fiscal management of the Council.


The Chairman, Panel Members and the treasury advisor, discussed whether there was a need to change the current treasury strategy, and it was agreed that there was no requirement to change at present. The next strategy would be taken to the Panel in early 2021.