Decision details

A report was presented on the County Council's Treasury Management Policy.

It was reported that recent economic uncertainty had resulted in the credit agencies downgrading the UK sovereign rating. Therefore, in view of the recent changes and in anticipation of any future reductions, the County Council's Treasury Management Policy had been reviewed.

The Committee was informed that the economic position and low interest rates also required further consideration for the fixing of long term debt and the report covered the options including the potential use of the Municipal Bond Agency (MBA). The report allowed for further opportunity to consider the risks associated with the MBA in response to the resolution of Full Council at their meeting held on 21 July 2016.

Following lengthy debate and questions to officers with regard to the risks and benefits associated with the potential use of the MBA, it was Moved and Seconded:

'That:

i)  The changes to the Treasury Management Strategy, as set out in the report, to allow for changes in the UK sovereign credit rating following the referendum vote to leave the European Union, be approved.

ii)  That Full Council be recommended to agree that the County Council does not enter into the UK MBA framework agreement'.

On being put to the vote the Motion was Lost. The substantive Motion was then put to the vote and it was:

Resolved:  That:

i)  The changes to the Treasury Management Strategy as set out in the report, to allow for changes in the UK sovereign credit rating following the referendum vote to leave the European Union, be approved.

ii)  Full Council be recommended to agree that the County Council enters into the UK MBA framework agreement as set out in the report to the committee.