Issue - meetings

Report of the Executive Director (Resources, Environment and Cultural Services) providing a mid-year update on the Council’s treasury activities.

Report of the Executive Director (Resources, Environment and Cultural Services) providing a mid-year update on the Council’s treasury activities.

(1)        The Decision Taken

RESOLVED:

That the following be noted:-

(1)       the current treasury position and Treasury Management Indicators.

(2)       the intention to ‘opt-up’ to professional status under MiFID II regulations and the need to obtain a ‘Legal Entity Identifier’.

(3)       the Treasury Management Strategy 2018/19 would include the proposed changes to CIPFA’s Prudential and Treasury Management Codes, as appropriate.

(2)        Reasons for the Decision

In accordance with the Treasury Management Strategy a mid-year update on the Council’s treasury activities was provided including details of the investment and loans portfolios and an economic review from treasury advisors.

No new external borrowing had been undertaken during the period, and Housing Revenue Account (HRA) borrowing, originally £305M, had now been reduced to £244M, implying £61M of “headroom” within the HRA borrowing limit.

Under the EU Markets in Financial Instruments Directive, from January 2018, all local Authorities were classed as “Retail” by default, but had the ability to opt up to “Professional” classification. It was recommended that the Council opted-up in this way as no practical burdens would be suffered in so doing, but there would be access to a wider choice of investment instruments than would otherwise be the case. 

(Note: There were no declarations of interest by a Member(s) in respect of the matter decided).