To consider and note the Treasury Management Strategy for 2023/24 to 2026/27 and Minimum Revenue Provision (MRP) Policy Review.

The Director of Resources and Assurance introduced the report on the Treasury Management Strategy for 2023/24 to 2026/27 and Minimum Revenue Provision (MRP) Policy Review.  These reports had been prepared by the Council’s external Treasury Management advisors, the Link Group.

The Scrutiny management board debated the report raising principal points relating to:

• the investment strategy of the council and whether the low risk investment approaches ensures a strong enough return on the investments made;
• the options set out in the Link report at Table 1 which the committee were invited to comment upon.

Resolved: The committee supports the recommendation being made by LINK and the administration to agree taking forward option 1b, 2b + 2c to provide the highest potential return on the investments made by the council through its minimum revenue provisions review.

The committee turned its attention to the Treasury Management Strategy.  A number of points of clarification were sought during the debate, principally surrounding how the council:

·         defines risk in its investment strategy and determines where it places its investment;

·         whether there was scope to increase the risk of investments to increase the return on that investment,

·         whether the current returns on the existing investments were sufficient to cover the budget deficits currently being covered by the councils reserves, and

·         seeking further information to fully interrogate the reports presented at this meeting.

Resolved: The investment strategy is brought back to SMB to consider higher yield investment strategies, for security, liquidity and yield for 2023/24

Resolved: That the committee notes the Treasury Management Strategy and Minimum Revenue Provision review.