Agenda item

The Service Director Finance submitted a report presenting the proposals on the CIPFA Prudential Code and the CIPFA Treasury Management Code changes proposed following the recent CIPFA consultation on both Codes.

The report indicated that the changes proposed would be taken forward and incorporated within the revised Codes that were due to be published in December 2021.  It was noted that CIPFA expected Local Authorities to apply ‘principles’ form the publication date and implement a full adoption from 1^st April, 2022.  The report, in summarising the main issues arising from the consultation, aimed to prepare the Council and Committee for any changes to be introduced particularly in relation to training requirements and also outlined how the proposed changes would be addressed by Treasury Management Officers.

Appendices to the report provided the consultation responses to both Codes together with a summary for clients provided by the Link Group (the Council’s Treasury Advisors).

The Service Director Finance commented that there was nothing within the proposals that gave him any cause for concern although there were some potential training issues which would be the subject of a report to a future meeting.  He also reminded Members that the Committee had previously allocated two of its Members as Treasury Management spokespersons on the basis that with was a very technical area.  This practice had, however, lapsed over time and Members were asked if they wanted to re-adopt this approach going forward as a result of this latest consultation/update.  In response, Mr Johnston stated that this was a particular area of interest to him and he felt that we could add value to the process and to the Committee if so appointed.

In relation to the consultation on the Prudential Code and in response to questioning, there was a discussion of the implications of local authorities borrowing to finance acquisitions where obtaining commercial returns was the primary aim.   Service Director Finance commented on Barnsley’s position in this respect and he stated that this had not been something that the authority had ever entertained or was likely to consider.

RESOLVED:

(i)            that the issues arising from the CIPFA consultations be noted and the Council’s approach to the proposed changes and how these would be addressed by Treasury Management Officers be endorsed; and

(ii)          that Mr P Johnson be nominated as the Committee’s Treasury Management spokesperson.