Decision details

The report of the Chief Finance Officer was submitted advising Members on the current Treasury Management performance for the 2017/18 financial year, and the position regarding investments and borrowings at 30 September 2017.

The Chief Finance Officer advised that the request in the recommendation to increase the maximum to be invested in the Property Fund would allow the Council to increase investment returns. There had been a statutory override to protect the capital value of monies invested in agreed Property Funds but after a change in accounting treatment the Government had not yet reinstated this override for any monies invested. The Department of Communities and Local Government were currently considering the position and monies would only be invested in the Property Fund if the Government reinstated the statutory override that the CCLA Property Fund currently had.

In response to a Member’s question, the Chief Finance Officer commented that if the statutory override was reinstated it could be time limited and that was the reason for the requested increase in the investment in property. There was currently an earmarked reserve to cover any decrease in the capital value of the current Property Fund and further investment would not take the Council below its minimum level of reserves of £3 million.

Corporate Services Scrutiny Committee considered the report at its meeting on 23 November 2017 and its comments were reported.

RECOMMENDED that Council approves the:-

(1)          Treasury Management report in respect of the first six month of the 2017-18  year; and

(2)          Revised Treasury Management Strategy which includes a request to increase the limit for investment in Property from £5m to £10m.