Decision - Treasury Management Policy Statement 2012/13 - End of year review

33.1         The Committee considered a report of the Executive Director of Finance & Resources in relation to Treasury Management Policy Statement 2012/13 – end of year review. In line with good practice the report set out the treasury management actions during the second half of the year for Members to review and endorse. The report also summarised the position at the end of the year and set out performance against key indicators.

33.2         Councillor Ann Norman expressed concern in relation to the reduction in credit rating of the Co-op Bank; particularly that the majority of bond holders would need to disband or agree to raise the necessary capital. In response the Head of Strategic Finance & Procurement, Mark Ireland, explained that the view would not be known until October following a meeting. In the interim it was clarified that there would be no further investment in the Co-op as it had fallen below the authority’s investment grade; however, they would still hold small sums of money as they provided the Council’s banking service.

33.3         Councillor Sykes asked what the Council could do to maximise return on investment, and in response the Head of Strategic Finance & Procurement explained that Officers had considered this, but the historic position was to be extremely cautious. Without increasing the level of risk this would be quite difficult, but the work of this would be reported in a half year report.

33.4         RESOLVED – That the Committee note the report to the Policy & Resources Committee on 11 July 2013 and the subsequent recommendations and resolution.