Agenda item

(a)  That the Treasury Management activities for 2016/17 and the beginning of 2017/18 as set out in the body of the report be noted.

(b)  That the limit on Total Investments made with institutions (i.e. Pooled Funds) without credit ratings be increased.

The Assistant Director, Finance & Audit summarised the annual report on the Treasury Management Strategy and sought approval to increase the investment limit in pooled funds.

The Treasury Management Strategy had been successful in recent years and it continued to take a prudent approach to investment activity prioritising security and liquidity over yield.  It was confirmed that none of the Prudential Indicators had been breached.  The position regarding debt management was outlined and it was noted that there had been in increase in borrowing of £58m in the year to 31^st March 2017 to a total of £282m to support the Council’s ambitious capital programme.  Investments totalled £55m and the Assistant Director proposed increasing the amount the Council could invest with institutions without credit ratings from £10m to £25m.  Such investments provided an opportunity to diversify the investment portfolio and increase yield in a low interest rate environment.

After due consideration, the Cabinet noted the treasury management update and approved the increase in investment limits.

Resolved –

(a)  That the Treasury Management activities for 2016/17 and the beginning of 2017/18 as set out in the body of the report be noted.

(b)  That the limit on Total Investments made with institutions (i.e. Pooled Funds) without credit ratings be increased.