Councillor Johnny Thalassites, Lead Member for Finance, Customer Services & Net Zero Council, invited the Executive Director for Resources and Tri-Borough Director of Treasury and Pensions to set out the background to the proposed decision.

Officers summarised the report and drew Members’ attention to both the high interest rates and inflation and the geo-political factors affecting the interest rate forecasts, where the benchmark 5-year borrowing rate was still above 4%, and to the different sections of the report.

In response to a question, Officers advised the treasury management adviser Arlingclose was appointed two years ago for an annual cost of £30,000.

Officers clarified that the difference between gross debt and capital financing requirement indicated the total funding that would be required and not that the Council might be under delivering and the gap may be funded by internal sources rather than borrowing. They emphasised the Council only invested in funds with triple-A credit ratings and that if it had a more substantial portfolio, it would place funds with banks and other local authorities.

Officers were confident that the Council’s strategy was unlike those authorities that were reporting difficulties because their invest-to-change strategies had not delivered.

The Leadership Team RESOLVED, for the reasons set out in paragraphs 3.1- 3.7 and elsewhere within the report, that the recommendations at paragraph 2.1 adopted.

The Leadership Team:

Recommended to Full Council that the Council, having regard to the revised CIPFA Treasury Management in the Public Services Code of Practice:

(1) Adopt the four clauses as part of the Council’s Financial Procedure Rules as outlined in paragraph 1.1 of Appendix 1;

(2) Approve the Treasury Management Policy Statement as set out in Appendix 1;

(3) Approve the annual Treasury Management Strategy Statement, incorporating the Annual Investment Strategy for 2024/25, specifically:

a) the proposed Prudential Indicators which set maximum limits on treasury management activity as set out in Appendix 2 of the report;

b) the Minimum Revenue Provision (MRP) Policy 2024/25 as set out in Appendix 3;

c) the proposed use of investment instruments as set out in Section 6;

d) the use of specified and non-specified investments as set out in Appendix 4;

e) the governance arrangements as set out in Appendix 6

Action by: Executive Director of Resources