Agenda and minutes

(A period not exceeding 20 minutes for questions and statements from

members of the public and Elected Members to the Mayor of Doncaster, Ros Jones. Questions/Statements should relate specifically to an item of business on the agenda and be limited to a maximum of 100 words. As stated within Executive Procedure Rule 3.3 each person will be allowed to submit one question/statement per meeting.A question may only be asked if notice has been given by delivering it in writing or by e-mail to the Governance Team no later than 5.00 p.m. of the third working day before the day of the meeting. Each question or statement must give the name and address of the person submitting it. Questions/Statements should be sent to the Governance Team, Floor 2, Civic Office, Waterdale, Doncaster, DN1 3BU, or by email to Democratic.Services@doncaster.gov.uk)

Councillor Nick Allen asked the Mayor, Ros Jones the following question:-

‘The Treasury Management Update, contained within the recent Finance and Performance Report, made an interesting point regarding political uncertainty and Brexit. However I am not sure the referendum result 'continues to dominate the money markets' because if it did then surely DMBC would not be able to maintain being under borrowed - which is good for Doncaster Council at the moment. Surely our present position indicates that Doncaster has benefited from Brexit?'

In the absence of the Mayor, the Deputy Mayor, Councillor Glyn Jones provided the following response:-

The Council only borrows when it needs to, and uses cash balances to delay the need for borrowing. We are currently £39.3m under-borrowed.  At today’s long term interest rates, the £39.3m would cost an additional £0.9m annum over 50 years.  The Council had £528.8m overall borrowing at 31^st March 2018.

There is a risk associated with being under-borrowed, as it could be that interest rates will be higher in the future, at the point that the council needs to take out the borrowing. To minimise this risk, the council monitors the economic news, interest rate and inflation forecasts and forms a view on the future path of interest rates.

Councillor Allen was afforded the opportunity to ask a supplementary question as follows:-

‘Doncaster has benefited from Brexit and I would argue that it is incorrect to say that Brexit has dominated the money markets. I believe that my question has not been answered fully’.

In response, the Deputy Mayor, Councillor Glyn Jones stated that the country was not yet at the Brexit stage, however Brexit still has an effect on the money market. The Council has to abide by CIPFA Code of Practice and also relies on external advisors. He recalled that the Treasury Management was considered by Full Council in March, and, at that meeting he recalled a substantial amount of members didn’t take this matter forward and it wasn’t questioned at the time. The Council was working prudently and will need to wait and see what the outcome is and the impact that Brexit may have.

Debbie Hogg, Director of Corporate Services, added that the market continued to be assessed on a daily basis, which, in turn, informs investment decisions such as being more prudent by not taking out long term loans and using internal resources rather than borrowing.

Decision records dated 5th June, 2018, be noted.