Issue - meetings

The Executive Board Sub Committee considered the attached report:-

            The Executive Board Sub Committee considered a report of the Operational Director, Finance which reviewed activities on the Treasury Management 2011/12 Mid Year Review, in accordance with the Council’s Treasury Management Policy Statement.

            As a consequence of delays in the capital programme and in particular the Mersey Gateway project, more investments were being held with UK -backed LloydsTSB and the Royal Bank of Scotland. With potential further delays likely, combined with advance borrowing where beneficial, it was recommended to increase the counterparty limits of LloydsTSB and Royal Bank of Scotland.

            RESOLVED: That the revised Prudential Indicators and the increase in counterparty limits for Lloyds/TSB and Royal Bank of Scotland be approved.

          The Sub-Committee considered a report, which reviewed activities on Treasury Management for the mid-year point 2011/12 in accordance with the Council’s Treasury Management Policy Statement.

          The mid year report covered the following:

-    An economic update for the first six months of 2011/12;

-    A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

-    Capital expenditure (prudential indicators);

-    A review of the Council’s investment portfolio for 2011/12;

-    A review of the Council’s borrowing strategy for 2011/12;

-    A review of any debt rescheduling undertaken during 2011/12;

-    A review of compliance with Treasury and Prudential Limits for 2011/12.

          Members were advised that as a consequence of delays in the capital programme and in particular the Mersey Gateway project, more investments were being held with UK backed LloydsTSB and the Royal Bank of Scotland. With potential further delays likely combined with advance borrowing where beneficial, it was recommended to increase the counterparty limits of LloydsTSB and RBS as follows:

Current                             Revised

                                        <3months      >3months      <3months      >3months

LloydsTSB                        £20million      £15million      £30million      £20million

RBS                                 £20million      £15million      £30million      £20million

          RESOLVED: That Council be recommended to approve the revised Prudential Indicators and the increase in counterparty limits for Lloyds/TSB and Royal Bank of Scotland.