Agenda item

Treasury Management Policy Statement and Annual Management and Investment Strategy (A1327/JW)



The Chief Executive presented the report on behalf of the Head of Finance and Chief Finance Officer to seek approval from Members to approve the Treasury Management Policy Statement and the Annual Treasury Management and Investment Strategy.

            The CEO informed Members that our surplus funds are invested by North Yorkshire County Council (NYCC) and we had an Service Level Agreement with them, which was renewed in 2020 for three years to April 2023. This approach provides a strong professional approach to investment of our funds with a rate of return, which is currently the best we can expect given the very low interest rates.

            In respect of borrowing, we only borrow in line with the approved Capital Strategy and only externally with the Public Works Loan Board (PWLB), within the Authorised limit. Currently, it is more cost effective to borrow internally from our own surplus balances. This is because the rate of return on investing our money is lower than the actual interest we charged by borrowing from PWLB. Therefore, the interest we lose by using our own money is less than it would cost in interest if we borrowed externally.

           The Bank of England cut the bank base rate cut from 0.25% to 0.10% in March 2020 due to the coronavirus pandemic. If rates remain this low, the investment return could fall by another £15k to £10k, which will be considered at the mid-year review and is included in assumptions for the Medium Term Financial Plan.

The recommendations as set out in the report was moved, seconded, voted on and carried.





1.    To  approve the Treasury Management Policy Statement in Appendix 1 of the report.


2.    To  approve the Annual Treasury Management and Investment Strategy in Appendix 2 of the report, with specific approval of the Prudential Indicators and borrowing limits (paragraphs 5-13), and the policy on Minimum Revenue Provision (paragraphs 14-15), and adopts the Investment Strategy of North Yorkshire County Council (Appendix 3 – NYCC Appendix C, Schedules 1 to 6).











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