Agenda item

Cabinet Member: Deputy Leader (Statutory) and Cabinet Member for Croydon Renewal, Councillor Stuart King

Officer: Interim Corporate Director of Resources (Section 115 Officer), Richard Ennis

Key decision: No

The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below.

The Cabinet is asked to recommend to Full Council that it approves:

1.1.           The Treasury Management Strategy Statement 2022/23 as set out in this report including the recommendations:

1.1.1.       That the Council takes up borrowing requirements as set out in paragraph 4.15.

1.1.2.        That for the reasons detailed in paragraph 4.21, opportunities for debt rescheduling are reviewed throughout the year by the Corporate Director Resources (Section151 Officer) and that he be given delegated authority, in consultation with the  relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management in conjunction with the Council’s independent treasury advisers, to undertake such rescheduling only if revenue savings or additional cost avoidance can be achieved at minimal risk in line with organisational considerations and with regard to the Housing Revenue Account (HRA) as set out in the Council’s Medium Term Financial Strategy 2022/23 to 2024/25.

1.1.3.       That delegated authority be given to the Corporate Director Resources (Section151 Officer), in consultation with the relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management, to make any necessary decisions to protect the Council’s financial position in light of market changes or investment risk exposure.

1.2.           That the Council adopts the Annual Investment Strategy as set out in paragraphs 4.23 and 4.24 of this report.

1.3.           That the Authorised Limit (required by Section 3 of the Local Government Act 2003) as set out in paragraph 4.16 be as follows:

  2022/23                         2023/24                       2024/25

£1,674.624m                 £1,677.024m              £1,687.824m

1.4.           That the Council approve the Prudential Indicators as set out in Appendix D of this report.

1.5.            That the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix Eof this report be approved.

1.6.            That the Council’s authorised counterparty lending list criteria as advised within 4.24 and updated from time to time  in line with Link Group recommendations, be approved.

1.7.            That in the event of the Council receiving a Capitalisation Direction that requires amendments to any part of the statements, strategies or policies contained in this report that the Corporate Director Resources (Section 151 Officer) be authorized to implement those changes and to report them to the next meetings of the Executive and Council.

1.8.            The Capital Strategy Statement as provided within Appendix A and further detailed within Section 3 of this Report and have regard to the Capital Programme presented within the General Fund & Housing Revenue Account Budget 2022/23 to 2024/25 report which together comprise the Council’s Capital Strategy.

The Chair invited Cllr Stuart King to speak to the item and members received a summary of the treasury management objectives of the council for the forthcoming year.

Members noted significant changes to the capital programme and by putting affordability first in the council’s approach to borrowing. Further detailed work and reviews will be available, and Cllr King asked Cabinet to approve the recommendations set out within the report.

Cabinet members highlighted issues around operational boundaries and the authorized limit and referred to confusion around continued rising external debt. Officers responded to these concerns, stating that there were limits as to when these were up for renewal and the intention is to bring down borrowing in the long term, but for now, is considered affordable.

Members agreed the recommendations.

The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below.

The Cabinet is asked to recommend to Full Council that it approves:

1.1.             The Treasury Management Strategy Statement 2022/23 as set out in this report including the recommendations:

1.1.1.        That the Council takes up borrowing requirements as set out in paragraph 4.15.

1.1.2.        That for the reasons detailed in paragraph 4.21, opportunities for debt rescheduling are reviewed throughout the year by the Corporate Director Resources (Section151 Officer) and that he be given delegated authority, in consultation with the  relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management in conjunction with the Council’s independent treasury advisers, to undertake such rescheduling only if revenue savings or additional cost avoidance can be achieved at minimal risk in line with organisational considerations and with regard to the Housing Revenue Account (HRA) as set out in the Council’s Medium Term Financial Strategy 2022/23 to 2024/25.

1.1.3.       That delegated authority be given to the Corporate Director Resources (Section151 Officer), in consultation with the relevant member/s of the Executive carrying portfolio responsibilities which cover those currently performed by the Cabinet Member for Resources & Financial Governance and Cabinet Member for Croydon Renewal in relation to Treasury Management, to make any necessary decisions to protect the Council’s financial position in light of market changes or investment risk exposure.

1.2.             That the Council adopts the Annual Investment Strategy as set out in paragraphs 4.23 and 4.24 of this report.

1.3.             That the Authorised Limit (required by Section 3 of the Local Government Act 2003) as set out in paragraph 4.16 be as follows:

  2022/23                                2023/24                             2024/25

£1,674.624m                       £1,677.024m                    £1,687.824m

1.4.             That the Council approve the Prudential Indicators as set out in Appendix D of this report.

1.5.              That the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix Eof this report be approved.

1.6.              That the Council’s authorised counterparty lending list criteria as advised within 4.24 and updated from time to time  in line with Link Group recommendations, be approved.

1.7.              That in the event of the Council receiving a Capitalisation Direction that requires amendments to any part of the statements, strategies or policies contained in this report that the Corporate Director Resources (Section 151 Officer) be authorized to implement those changes and to report them to the next meetings of the Executive and Council.

1.8.              The Capital Strategy Statement as provided within Appendix A and further detailed within Section 3 of this Report and have regard to the Capital Programme presented within the General Fund & Housing Revenue Account Budget 2022/23 to 2024/25 report which together comprise the Council’s Capital Strategy.