Agenda item

The Service Lead, Finance explained that the highlights of the Treasury Management Strategy 2020/21 had been presented under the previous agenda item.

The Chair invited Members to comment and ask questions.

During the course of the discussion, the following points were raised:

·  Concern was raised regarding the risks associated with purchasing commercial properties.  A Member asked what safeguarding the Council put in place to minimise risk.  It was explained that any purchase made had to meet the criteria set out in the Council’s Investment Strategy.

·  A Member asked how the Council ensured its debt and borrowing were prudently managed.  It was explained that the Chartered Institute of Public Finance and Accountancy’s prudential code for Capital Finance in Local Authorities recommended that an authority’s total debt should be lower than its highest forecast Capital Financing Requirement (CFR) over the next three years.  The Council’s highest forecast of CFR during the next three years was £833 million.  The total debts for 2020/21 were expected to be £732 million; therefore the Council would comply with the recommendation.

·  Concerns were raised regarding the volatility of the property market.  It was queried what measures the Council took to mitigate for a downturn in property prices.  It was explained that as part of an investment the Council put in place long-term rental contacts to ensure a guaranteed income stream.  The Council’s Asset Investment Board scrutinised the performance of Council owned assets, and property was bought and sold accordingly.

·  A Member asked what financial arrangements were in place with the Council’s leisure providers at Farnham Road and Salt Hill Activity Centre.  It was explained that the operators ‘Everyone Active’ met the overhead running costs and paid a profit return to the Council.

·  A Member asked if the Department for Education (DfE) would be providing any funding to address the £1.2 million forecast overspend generated by Slough Children’s Trust.  It was noted that positive discussions had been held with the DfE and nationally local authorities’ were struggling to meet the growing demand for children’s services, and home to transport provision.

Resolved – That the Overview and Scrutiny Committee noted:

(a)  The Treasury Management Strategy 2020/21.

(b)  That the Treasury Management Strategy would be considered by Cabinet on 3rd February 2020 prior to it being recommended to Council on 20th February 2020.