Issue - meetings

To note the treasury outturn position for 2017-18 and the financial environment in global markets.

The Committee received the Treasury Management Strategy Annual Report on treasury performance for 2017/18, covering the Council’s activities in the borrowing and investment market and the associated monitoring and control of risk.

Members asked about the Council’s investment strategy and whether there was a target income or limit on borrowing.  The Chief Finance Officer explained that the Council has reviewed and updated its borrowing limits and that the level of borrowing was based on the principle that it was prudent and financially sustainable. He explained that the strategy was driven by the need to offset the loss of grants from central government, the loss of services delivered by Surrey County Council and to fund housing delivery.

The Chief Finance Officer advised the Committee that a new requirement had been introduced for the Council to approve a Capital Strategy giving an overarching narrative on its financial assets, how they were managed, risk mitigation and the rationale for the Strategy. The new Capital Strategy had to be in place by March 2019.

The Chairman suggested the Committee could have a role in pre-decision scrutiny of the Capital Strategy, to which members agreed.

The Leader, Councillor Ian Harvey, added that the purpose of the Council’s property acquisitions strategy was to maintain and enhance the level of service the Council gave to residents and deliver housing. He confirmed that as long as cuts to funding or County Council services continued to be made, the Council would continue to look for further property acquisitions.

Resolved to:

1)    Note the report; and

2)    Include the Capital Strategy on the Overview and Scrutiny Committee work programme for consideration at its November 2018 meeting, or the meeting prior to its consideration at Council if this is later.

Councillor Williams

To receive an annual report on the treasury outturn position for 2017-18.

Cabinet considered the Treasury Management Annual Report for 2017-18, covering the council’s activities in the borrowing and investment market and the associated financial risks.

Resolved that Cabinet notes the contents of the report