Agenda and draft minutes

Virtual via Zoom, Treasury Management Panel - Friday 26 February 2021 1.00 pm

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: The open part of this meeting may be viewed on YouTube by highlighting and opening the following link: 

No. Item


Apologies for Absence


The Chairman welcomed Panel Members, the Cabinet Portfolio Holder for Finance in his Observer capacity, and Mrs Phiroza Katrak from Arlingclose Ltd, (External Treasury Advisor) and noted the presence of the Council’s Strategic Director (Internal Services), Head of Finance & Section 151 Officer, Principal Accountant, Democratic Services Manager and the Panel Clerk.


There were no apologies for absence.


Declarations of Interest

To receive declarations of interest from Members including the terms(s) of the Grant of Dispensation (if any) by the Audit Board or Managing Director.


There were no declarations of interest.


Confirmation of the Minutes of the meeting held on 4 November 2020 pdf icon PDF 183 KB




1.     That the Minutes of the Panel meeting held on 4 November 2020 be confirmed as accurate.




In accordance with Section 100A(4) of the Local Government Act 1972 (as amended) the Panel went into closed session to consider EXEMPT agenda Item A – Treasury Management Review.  


Treasury Management Review


The Panel proceedings resumed in closed session to consider the Treasury Management Review (TMR) report and Appendices [Agenda Item A in the EXEMPT papers].


The TMR report from the Principal Accountant provided Members with an update on treasury activity since the end of October 2020.  Attached as Appendix A and B to the report respectively, were draft Treasury Management Strategy and Investment Strategy 2021/22 documents for the Panel’s consideration, prior to presentation to the General Assembly of the Council (GAC’s) annual budget meeting on 1 March 2021.


The report informed Members that Treasury Management in local government was regulated by the Local Government Act 2003 and the CIPFA Code of Practice on Treasury Management 2017. The Council was obliged to adhere to the Act, the CIPFA Codes, and the MHCLG’s Investment Guidance (as revised 2018) in conducting its Treasury Management activities. The Council defined its treasury management activities as:


‘The management of the Council’s investments [including all financial and non-financial assets held primarily for financial return], cash flows, its banking, money market and capital market transactions; effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks’.


The Head of Finance confirmed that the Council adhered to the Act, CIPFA Codes and the MHCLG investment guidance to form the broad framework that governed all its treasury management activities. The Treasury Management Strategy 2021/22 [Appendix A to the report], set out the limits and indicators that would apply to treasury activities during the 2021/22 financial year.


The Principal Accountant hi-lighted the changes to the strategy this year which were predominantly with the structure and layout of the counterparty limits table. It had been necessary to uplift some of the limits due to the growth in size of overall investment balances.


Councillor Oakley-Dow raised a question on whether the Council has an ethical investment strategy that sits alongside the treasury management strategy.  The Principal Accountant confirmed that there is not currently a formal policy in place but that the creation of an ESG policy is currently under review.


In addition to the report and appendices, Panel Members received a PowerPoint presentation from Phiroza Katrak, Arlingclose Ltd, the Council’s external treasury advisor which covered the following key areas:


·       UK and global economy update

·       CPI and interest rate forecasts

·       Pooled fund investment performance to date

·       Overview of the CIPFA consultation on the prudential code and treasury management code




1.     That Panel Members note the contents of the report and the draft Treasury Management Strategy [Appendix A to the report] and Investment Strategy [report Appendix B], prior to submission to the General Assembly of the Council Budget meeting on 1 March 2021;


2.     That Panel Members note the contents of the presentation from the TMP External Advisor.