Issue - meetings

To consider the Treasury Management 2018/19 mid-year review report.

RESOLVED to:

i.              approve an amendment to the Treasury Management Strategy 2018/19 for the use of Money Market Funds domiciled outside of the UK that comply with the current Treasury Management Strategy with a maximum investment of £3m and Arlingclose recommendations and guidance (detailed in points 12 – 23).

ii.             note the Treasury Management mid year review report, updated prudential indicators and Minimum Revenue Provision policy (Appendix A - C).

The report had been brought to Cabinet to update Members on current Treasury activities and to note the Treasury Management Mid-year Review. The report also sought approval to amend the Council’s Treasury Management Strategy 2018/19 for the use of Money Market Funds domiciled outside of the UK. The funds in question were domiciled in Ireland and Luxembourg. Members were informed that the amendment would minimise risk to the Council’s finances and assist in meeting cash flow requirements, whilst ensuring the preservation of capital. 

In response to a question from Councillor Light relating to the ethics behind such a strategy, the Portfolio Holder for Finance and Administration said the EU countries in question had equivalent regulation to the UK, although their respective systems of taxation had made investment more attractive. He said this was an opportunity to take advantage of the efficiencies of the market, as were many other local authorities, and the amendment to the strategy would allow the Council to diversify in its investments.

RESOLVED to:

i.           To approve an amendment to the Treasury Management Strategy 2018/19 for the use of Money Market Funds domiciled outside of the UK that comply with the current Treasury Management Strategy with a maximum investment of £3m and Arlingclose recommendations and guidance.

ii.          To note the Treasury Management Mid-year Review report, updated prudential indicators and Minimum Revenue Provision policy.