Agenda and minutes

Treasury Management Panel - Monday 5 July 2021 9.30 am

Venue: Board Room - Civic Centre. View directions

No. Item


Apologies for Absence


The Chairman welcomed Members to the first in-person meeting of the Panel since the advent of the Government’s lockdown measures to combat the spread of COVID-19.


He noted the presence of the Director of Corporate Services, the Head of Finance and the Principal Accountant and the remote presence via Zoom of Mrs Phiroza Katrak from Arlingclose Ltd, the Council’s External Treasury Advisor.


An apology for absence had been received from Cllr. Burrell.


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 Chief Officer and Director of Corporate Services, in consultation with the Monitoring Officer.


There were no declarations of interest.


Confirmation of the minutes of the meeting held on 26 February 2021 pdf icon PDF 197 KB




1.     That the minutes of the Panel meeting held on 26 February 2021 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 D.



Treasury Management Review - July 2021


Catherine Bailey presented the treasury outturn report for 2020/21 to the panel. The Chairman and Panel members discussed the report and in particular the minor breach to the money market fund investment limit on one fund which occurred in March 2021. The panel were satisfied that the error had been fully investigated and prevention measures were in place to prevent future reoccurrence.


The Chairman and Panel members discussed the investment returns achieved in year and the level of reserve for possible future volatility of the externally managed pooled funds. The panel were satisfied that the investment volatility reserve level is sensible. There was also discussion on the mix of investments held and the low returns currently being achieved on the money market funds and whether there were other options. Catherine Bailey confirmed that some additional investment would be made in the externally managed pooled funds later in the month [July 2021].


Phiroza Katrak (External Treasury Advisor) gave an update on the UK and world economy and the outlook as the world begins to emerge from the restrictions imposed as a result of the Covid-19 pandemic. She explained to the panel the early indications from the CIPFA code consultation on the Prudential Code and Treasury Management Code. The Prudential Code will be clarifying that authorities must not borrow to invest for the primary purpose of commercial return, and defining the acceptable reasons to borrow money. The Treasury Management Code will be introducing the “liability benchmark” as a mandatory treasury indicator (this is already provided to the Council by Arlingclose), implementing a treasury management knowledge and skills framework and incorporating Environmental, Social and Governance (ESG) issues as consideration within Treasury Management Practice (TMP) 1 Risk Management.


A discussion on ESG by the Panel followed. There was agreement that the treasury functions main priorities would continue to be to ensure security of the investment and liquidity and to manage these two priorities whilst trying to achieve an investment return. They agreed that ESG in treasury decisions is important and work is to be done to include this within the treasury management practices risk management section. Catherine Bailey will be investigating the ESG policies of current investments and will consider the ESG service offering available through Arlingclose Ltd to aid preparation of the TMP.


Phiroza gave an update on the performance of the externally managed pooled fund investments and the Council’s borrowing position. The Council is due to repay the £5m PWLB maturity loan in February 2022. This is the only loan in the Council’s portfolio when the principal is repaid at the end of the loan’s life rather than through regular annual instalments. Scheduled repayments will reduce borrowing by a total of £9.44m this financial year. Phiroza confirmed that the premiums are very high to repay early any of the remaining loans.




1.     That the report be noted.