Agenda item

To agree the Annual Capital and Treasury Strategy for 2021/22 (including Prudential and Treasury Indicators) for submission to Council on 13 July 2021.

RESOLVED that Cabinet –

a)    notes the outcome from the Resources and Services Overview and Scrutiny Committee meeting on 24 May 2021 and agrees the response thereto from the Portfolio Holder for Corporate Finance and Governance; and

b)    agrees that the Annual Capital and Treasury Strategy for 2021/22 (including Prudential and Treasury Indicators), attached within Appendix A to item A.2 of the Report of the Corporate Finance & Governance Portfolio Holder, can be submitted to Council for its approval.

Cabinet had before it a report of the Corporate Finance & Governance Portfolio Holder (A.2) which sought its approval of the Annual Capital and Treasury Strategy for 2021/22 (including Prudential and Treasury Indicators) for submission to Council on 13 July 2021.

It was reported that the Local Government Act 2003 and supporting regulations required the Council to set out its treasury strategy for borrowing, and to prepare an annual investment strategy (as required by Investment Guidance subsequent to the Act) that set out the Council’s policies for managing its investments and for giving priority to the security and liquidity of those investments, “having regard” to the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code and the CIPFA Treasury Management Code of Practice. Revised editions of both documents had been issued in December 2017.

Members were reminded that, from 2019/20 the Capital Strategy had been combined with the Treasury Strategy into one document, which was required to be updated/approved annually.

Cabinet recalled that the Corporate Finance and Governance Portfolio Holder had approved the Annual Capital and Treasury Strategy for 2021/2022, including the Prudential and Treasury Indicators, on 7 April 2021 for consultation with the Resources and Services Overview and Scrutiny Committee.

It was reported that the Resources and Services Overview and Scrutiny Committee had considered the Strategy at its meeting held on 24 May 2021. Their comment along with the response of the Portfolio Holder for Corporate Finance and Governance was as follows:

Comment of the Resources and Services Overview and Scrutiny Committee

The Committee recommended that Cabinet approves the submission of all schemes for which there were reserve provisions and one off funds set aside, be subject to the assessment set out in the draft Annual Capital and Treasury Strategy 2021/22 and presented to the Officer Project Board to determine whether the funding should be released.

PFH Response

“This will effectively form part of the review of all key projects and activities that is currently underway as part of the accelerated delivery programme.”

The Leader of the Council (Councillor Stock OBE) formally thanked the Resources and Services Overview & Scrutiny Committee for reviewing the Strategy and for its comment.          

Pursuant to the provisions of Cabinet Procedure Rule 1.5(ii) the Leader of the Labour Group (Councillor I J Henderson) requested that his Group’s concerns about the following matter be recorded in the minutes of the meeting:-

•      whether the Council’s project to build 10 new Council owned homes in Jaywick Sands had been subject to evaluation in respect of its value for money; its expected return on the capital investment and an impact assessment.

The Leader of the Council (Councillor Stock OBE) requested that a detailed response be sent to Councillor Henderson on the above.

Having considered the Strategy and the proposals contained therein:-

It was moved by Councillor Stock OBE, seconded by Councillor P B Honeywood and:-

RESOLVED that Cabinet –

a)    notes the outcome from the Resources and Services Overview and Scrutiny Committee meeting on 24 May 2021 and agrees the response thereto from the Portfolio Holder for Corporate Finance and Governance; and

b)    agrees that the Annual Capital and Treasury Strategy for 2021/22 (including Prudential and Treasury Indicators), attached within Appendix A to item A.2 of the Report of the Corporate Finance & Governance Portfolio Holder, can be submitted to Council for its approval.