Issue - meetings

Executive are asked to approve the proposed increase in the treasury management annual investment strategy “Non Specified” limit to enable the movement of cash on short term deposit into longer fixed term deposits (investments) to access higher interest rates.

Recommendation

It is recommended that the Executive approve the increase in the Non specified limit from £30 million to £50 million.

RESOLVED that the increase in the Non specified limit from £30 million to £50 million be approved.

Reason: The detailed reasons for the recommendations are set out in the report.

[POLICY OVERVIEW & SCRUTINY COMMITTEE]

Councillor Merryweather presented the report which set out a proposal to approve an increase in the treasury management annual investment strategy “Non Specified” limit to enable the movement of cash on short term deposit into longer fixed term deposits (investments) to access higher interest rates.  It was noted that the Council was required to manage significant cash flows and balances and was able to use interest income from cash deposits for general fund spending.  The current cap of £30million was considered to be too low and therefore the Council was foregoing valuable general fund interest income.  The recommendation was to raise the limit to £50million, which would not require or oblige the Council to place larger amounts on long term deposit, only where it was appropriate to do so and it was

RESOLVED that the increase in the Non specified limit from £30 million to £50 million be approved.