Issue - meetings

Report of the Cabinet Member Finance

The Leader of the Council presented the report, in the absence of the Cabinet Member Finance.

He thanked the Cabinet Member Finance for her work in drawing the report together, and explained that it relates to a number of key financial issue that the council is obliged to agree. The topic was highly time-sensitive and had to be considered by Council at this meeting. He added that it had already been agreed by Cabinet and the Treasury Management Panel.

Key issues covered in the report include the plans for Cyber Central and the £100m investment in housing, which remain of great importance to the town despite the current Covid-19 emergency. He reported that the council was working closely with partner organisations so that it can understand their needs in order to keep functioning.

He drew attention to the Minimum Revenue Provision, which concerned the funds needed to be set aside to cover current debt. He emphasised that the financial context of council decisions might be radically different at the end of this crisis, and so a flexible approach is required. He thanked the Executive Director Finance and Assets for his work on the report, and for his positive and flexible approach.

One Member asked whether a recorded vote was required. The Head of Law clarified that this was not necessary.

The Mayor moved that the recommendations be voted on together.

RESOLVED (unanimously) THAT

1. the Capital Strategy 2020/21 at Appendix 2 be approved
2. the Investment Strategy 2020/21 at Appendix 3 be approved
3. the Treasury Management Strategy Statement 2020/21 at Appendix 4 be approved
4. the Minimum Revenue Provision (MRP) Statement 2020/21 at Appendix 5 be approved

Report of the Cabinet Member Finance to follow

RESOLVED THAT

Council be recommended to consider and approve the following :

·         The Capital Strategy 2020/21 at Appendix 2

·         The Investment Strategy 2020/21 at Appendix 3

·         The Treasury Management Strategy Statement 2020/21 at Appendix 4

·         The Minimum Revenue Provision (MRP) Statement 2020/21 at Appendix 5

The Cabinet Member Finance introduced the report and explained that the purpose of the Council’s Capital Strategy was to document the principles and framework that underpinned its longer-term capital investment and expenditure proposals. The Capital Strategy was a new requirement for councils to produce from April 2018 following the publication of the revised Prudential Code for Capital Finance in Local Authorities 2018.

The Cabinet Member Finance elaborated that Cheltenham Borough Council’s Capital Strategy formed a key part of the council’s overall Corporate Planning Framework. It provided a mechanism by which the council’s capital investment and financing decisions can be aligned with the Council’s overarching corporate priorities and objectives over a medium term planning horizon.

The Strategy set the framework for all aspects of the council’s capital expenditure; including planning, prioritisation, management and funding. The Strategy had direct links to the Council’s Asset Management Strategy, Commercial Strategy, Investment Strategy and Treasury Management Strategy and formed a key part of the Council’s Medium Term Financial Strategy.

In December 2017, CIPFA published updates to the Prudential Code and The Treasury Management Code of Practice. The new Prudential Code required the Council to approve a Capital Strategy on an annual basis in advance of the forthcoming financial year. The Ministry of Housing, Communities and Local Government (MHCLG) have also updated statutory guidance on treasury management which has resulted in changes to the Treasury Management Strategy and the introduction of a separate Investment Strategy. For 2020/21 a new set of strategic documents require Council approval. This was scheduled to take place on Monday 23 March.

RESOLVED THAT

Council be recommended to consider and approve the following :

·         The Capital Strategy 2020/21 at Appendix 2

·         The Investment Strategy 2020/21 at Appendix 3

·         The Treasury Management Strategy Statement 2020/21 at Appendix 4

·         The Minimum Revenue Provision (MRP) Statement 2020/21 at Appendix 5