The Cabinet considered a report of the Corporate Director for Corporate Services concerning the Treasury Management Policy for 2016/17 and the requirement for Prudential indicators to be set under the Local Government Act 2003.

Recommended:-

1. That the Treasury Management Policy Statement, as set out in Appendix 1 of the submitted report, be approved.

2. That the Treasury Management Strategy, as set out in Appendix 2 of the report, be approved.

3. That the Annual Investment Strategy, as set out in Appendix 3 of the report, be approved.

4. That the Minimum Revenue Provision (MRP) Policy, as set out in Appendix 5 of the report, be approved.

5. That the prudential indicators, as set out in Appendix 6 of the report, be approved.

6. That the operational boundary and authorised limits for borrowing for 2016/17 be set at £280m and £290m respectively.

Reason for Decision

7. Decisions 1 to 3 above are to comply with the CIPFA Treasury Management Code of Practice.

8. Decision 4 above is to comply with the Local Authority’s general duty to charge an amount of MRP to revenue which it considers to be prudent.

9. Decisions 5 and 6 above are to demonstrate compliance with the CIPFA Prudential Code for Capital Finance in Local Authorities.

Other Options

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them. The Treasury Management Policy set out in the submitted report aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)

Executive Councillor:- Woodley