The revised Guidance and Codes impose additional requirements on local authorities aimed to address concerns arising from the commercialism agenda, in particular, the use of loans and the purchase of property to generate a profit.
The report of the Director of Finance and Transformation gave details of the additional requirements imposed on local authorities through revised statutory guidance and codes of practice. These were aimed at addressing concerns arising from the commercialism agenda, in particular the use of loans and the purchase of property to generate a profit.
RESOLVED: That the Cabinet be recommended to
(1) note the new requirements and disclosures contained in the Statutory Guidance on Local Government Investments 2018 Edition set out at Annex 1 to the report;
(2) readopt the four clauses to be formally adopted, as set out in the Code and reproduced at Annex 2 to the report;
(3) readopt the Treasury Management Policy Statement, as set out in the Code and reproduced at Annex 3to the report;
(4) note the new statement pertaining to investments that are not part of treasury management activity, reproduced at Annex 4 to the report;
(5) note the additional paragraphs to be added to the Council’s Treasury Management Practices, as set out at Annex 5 to the report;
(6) note the additional paragraphs to be added to the Council’s Capital Strategy, as set out at Annex 6 to the report; and
(7) note the prudential indicators set out at Annex 7 to the report.