Issue - meetings

Officers provided details of the final 2016/17 Treasury Position. There had been no new long-term borrowing and external investment income outturn had exceeded the budgetted figure by £0.509m despite the Bank of England cutting the bank rate from 0.5% to 0.25% in August 2016.

Officer advised that they did not believe it would be possible to continue to outperform the budgetted income in the future as inflation was already at 2.9% compared to the Bak of England rate of 2.0%. If the Council are to continue to meet or even exceed the targets there was a need a change to the Treasury Management Statement to expand the list of instruments the Council can invest in.  There would be no investment in these new instruments until a fundamental review had been undertaken of the Authority’s capital investment plans in order to develop a 5 year capital programme from 2018/19 to 2023/24.

The Committee noted:

1.    The final 2016/17 Treasury Position;

2.    The treasury and prudential indicators; and

3.    The recommendation to Cabinet and Council to consider the report and approve changes to the 2017/18 Treasury Management Strategy Statement.

4.