Agenda item

Treasury Management Strategy 2021/22

Report of the Chamberlain


The Board considered a report of the Chamberlain setting out the City’s Treasury Management Strategy Statement and Annual Investment Strategy (TMSS) for 2021/22. The Chamberlain clarified that the lending limit proposed for medium quality banks was £100 million rather than the £75 million set out in the covering report. The Chamberlain then introduced the report and drew Members’ attention to the key points, including changes from the previous strategy. The Board noted that the proposed strategy included the aim of meeting liquidity needs and ensuring cash was invested securely, with further detail on any opportunity for longer term cash investment to come to the Board in due course.


Members were satisfied with the Treasury Management Strategy, but observed that the decisions relating to the Strategy were largely binary. Members added that an accompanying forecast and options paper in respect of the investment strategy would increase debate, with greater clarity on possible directions of travel. The Chairman suggested the Board consider shorter-term proposals along the lines of those discussed by Members separately to the longer-term view, which may require further input from Investment Committee.


The Chamberlain advised that the scope of the Treasury Management Strategy related to managing the Corporation’s cash balances and borrowing requirements, and did not include the longer term financial investment portfolios for City’s Cash and Bridge House Estates. The Chairman reminded Members that changes could be made to the Treasury Management Strategy during the year if desired, and the Board could consider its own methods for achieving the desired return, with proposals for the short and medium term to be considered at the next Board meeting.


RESOLVED – That the Financial Investment Board has reviewed, and approves, the attached Treasury Management Strategy Statement and Annual Investment Strategy for 2021/22 for submission to the Finance Committee and the Court of Common Council as part of the City Fund – 2021 Budget Report for formal adoption.

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