Issue - meetings

To consider the report of the Strategic Director for Corporate Resources.

Agreed:

RECOMMENDED that Council:

(1)  note the Treasury Management report in respect of the first six months of the 2024/25 financial year; and

(2)  adopt the Treasury Management Environmental, Social and Governance policy.

Reason for Decision: As set out in the report.

The Executive received the statutory report on the current Treasury Management performance for the 2024/25 financial year and the position regarding investments and borrowings at 30 September 2024. The report further sought the adoption by Council of a Treasury Management Environmental, Social and Governance policy.

Particular reference was made to:-

·    this year the Treasury Management also included Environmental Social and Governance Policy as requested by Scrutiny Committee for Council approval;

·    the council had now dis-invested from using Barclays and the Council was proposing to run down its cash balances to avoid undertaking longer-term borrowing over the next six months; and

·    it was anticipated that some short-term borrowing may be required to maintain the cash position, which was built into projections and future budgets;

During the discussion, Executive Members raised the following points and questions:-

·         the Environmental Social and Governance Policy and dis-investment from using Barclays was welcomed;

·         could further detail be provided on the legal aspects of balancing investments;

·          was there a means to measure security liquid and yield core principles when considering environmental social and governance?

Councillor Moore spoke on the item as opposition group leaders and raised the following points and questions:-

·         would the Council be closing its account with Barclays and transferring to another bank?

·         it was important that those principles were framed within the legal commitments;

·         the environmental principle didn’t specifically reference climate change; and

·         were the social elements for human rights taken into consideration for use of banks who invest with other companies that Council would unlikely deal with?

A Member advised that section 6 of the report outlined that climate change could not displace the Security Liquidity and Yield (SLY) principles.

In response to questions raised, the Strategic Director for Corporate Resources advised that:-

·         Members had a legal responsibility to consider SLY as part of Treasury Management, but a frame work could be introduced to support decision making;

·         the Council required having £15 million on standby at any time to ensure cash flow was effectively managed; and

·         the ESG policy would help identify the best products that meet the ESG policy, but the Council would still be able to use organisations that meet the counterparty requirements in exceptional circumstances;

The Leader moved the recommendations, which were seconded by Councillor Wright, voted upon, and CARRIED unanimously.

RECOMMENDED that Council:

(1)  note the Treasury Management report in respect of the first six months of the 2024/25 financial year; and

(2)  adopt the Treasury Management Environmental, Social and Governance policy.