Decision details

Treasury Management Strategy 2021/22

Decision Maker: Audit, Risk and Governance Committee

Decision status: Recommendations Approved

Is Key decision?: No


To provide a report outlining the borrowing and investment strategy for the following year


Mike Jensen, Director of Investment, Financial Services, presented the Treasury Management Strategy, the Non-Treasury Strategy and associated Minimum Revenue Provision Policy Statement.


The following points were highlighted from the report:


·  The Treasury Management Strategy advocated the continued maintenance of a low credit risk profile and cautious portfolio management. The risk mitigation strategy had successfully supported the council through the challenging macroeconomic environment, resulting from the Covid-19 pandemic and the UK's withdrawal from the European Union.


·  Another year of low interest rates was anticipated. It was likely that gilts yields would continue to be low.


·  Supranational bonds provided a preferable AAA credit rating compared to UK institutions following the downgrading of credit ratings in 2020.


The efforts of the whole Treasury Management team in strengthening the council's treasury position was acknowledged.


In response to a question it was clarified that, as a result of the 2020 policy change to restructure Lancashire's debt profile, the option of floating a third bond was not anticipated as necessary this year. However, the option would continue to be kept under consideration.


Resolved: That the Treasury and Non-Treasury Management Strategies and the Minimum Revenue Provision Policy Statement for 2021/22, as presented, be recommended to the Full Council for approval.


Report author: Paul Dobson

Date of decision: 25/01/2021

Decided at meeting: 25/01/2021 - Audit, Risk and Governance Committee

Accompanying Documents: