The Finance Manager presented the report on the draft Treasury Management Strategy, Investment Strategy and Capital Strategy for 2020/21.  CIPFA had revised the Prudential Code, such that the Council’s Investment and Capital Strategies now need to be approved alongside the Treasury Management Strategy.

The Treasury Management Strategy was concerned with ensuring enough cash was available for the Council’s day to day running, whereas the other strategies focussed on non-treasury investments, risks and funding.

The Council’s approach was still to run down balances to fund the capital programme.  It had entered into a borrowing position utilising an alternative option to the Public Works Loan Board, given the increase in PWLB rates last year.  Borrowing was being kept to the short term for the time being but this would remain under review.  A total borrowing requirement of £53.1m over three years was expected.

The Investment strategy had been updated with the service loan to Cobtree of £330k.  The Capital Strategy had been updated to include the current capital programme, but it was noted that this was subject to approval by Policy and Resources on 22 January 2020.

The Committee reflected on the briefing on borrowing they had received prior to the meeting and indicated how useful it had been.  The Committee stressed its support for borrowing in principle and wanted officers to consider the time value of money in decisions on whether to borrow early.  Officers responded that interest rates and borrowing options were kept under review and that previous reports on capital purchases had included the time value of money.

RESOLVED: That

1.  The Treasury Management Strategy for 2020/21 attached as Appendix A to the report be agreed and recommended to Council for adoption, subject to any amendments arising from consideration of the capital programme by Policy and Resources Committee at its meeting on 22 January 2020;

2.  The Investment Strategy for 2020/21 attached as Appendix B to the report be agreed and recommended to Council for adoption; and

3.  The Capital Strategy for 2020/21 attached as Appendix C to the report be agreed and recommended to Council for adoption.