Agenda item

That the Treasury Management Strategy for 2020/21 be approved.

The Leader of the Council gave a comprehensive overview of the Council’s budget strategy comprising the Treasury Management Strategy, Capital Strategy and Revenue Budget.  The key budget headlines were summarised as follows:

·  A balanced revenue budget was being recommended for the year ahead.

·  Increased investment in demand led growth for front line services - protecting the most vulnerable in Slough (children in need, elderly requiring care and those facing homelessness).

·  Commercial income and efficiencies being used to offset government funding reductions and to protect front line services.

·  Strengthening the medium term financial position by improving General Reserves towards the Unitary average.  As advised by the LGA Peer Review, this would offset risks of future service pressures or loss of Government funding.

·  1.84% increase in the “basic” Council Tax (with an additional 2.0% increase in Adult Social Care Precept).

A report was considered that requested Cabinet to recommend approval to Council of the Treasury Management Strategy 2020/21.  The strategy set out how the Council would manage the treasury risks and fund the capital programme.

The Council currently had £569m of borrowing and an average investment balance of £45m throughout the year.  Officers worked closely with treasury advisors Arlingclose.  The Cabinet noted that the highest forecast of Capital Financing Requirement during the next three years was £833m and the total debt for 2020/21 was expected to be £732m.  It was therefore confirmed that the Council would be operating within its borrowing limits for the year ahead.

Lead Members discussed the activity undertaken as part of the Strategic Acquisitions Strategy.  The capital investment of £106m in the programme was projected to generate £5.3m in 2019/20 and £5.8m in 2020/21 and the strong returns on investment helped support the Council’s revenue budget.  Members requested that Appendix 2 include a note confirming that the strategic acquisition investments were within the ceiling agreed by Council and that the business cases had been thoroughly assessed before the acquisitions were approved.

After due consideration, it was agreed to recommend approval of the Treasury Management Strategy to Council on 20^th February 2020.

Recommended –  That the Treasury Management Strategy for 2020/21 be approved.