Agenda item

(a)   Question from Mr Glen Bluff to the Mayor of Doncaster, Ros Jones:-

“How much does the Council have invested as part of its treasury management that is due to mature between now and the end of 2020 and would it not be more prudent for the council to re-invest this money in local businesses impacted by COVID, rather than invest our money externally?”

(a)   Question from Mr Glen Bluff to the Mayor of Doncaster, Ros Jones:-

“How much does the Council have invested as part of its treasury management that is due to mature between now and the end of 2020 and would it not be more prudent for the Council to re-invest this money in local businesses impacted by COVID, rather than invest our money externally?”

The Mayor of Doncaster, Ros Jones, gave the following reply:-

“The Council has £15m invested that will mature between 19th November and 31st December, 2020.  A further £35m will mature between 1st January and 31st March, 2021.  The Council is required to operate a balanced budget which broadly means that cash raised during the year, will meet cash expenditure.  The Council’s Treasury Management Strategy, approved each year by Full Council, sets out how balances are invested.  Of primary concern in the strategy are liquidity and security; in other words, ensuring cash is available when it needs to be spent on the delivery of services and ensuring that investments are only made with low risk financial institutions.  The Treasury Management Strategy is written to comply with the Local Government Act 2003, CIPFA Prudential Code, MHCLG MRP guidance, the CIPFA Treasury Management Code and the MHCLG Investment Guidance.  Therefore, there is no scope for investing surplus cash balances locally as suggested, unless there is a national change in legislation.

The Council is however, doing what it can to support local businesses through distribution of national government grants to businesses forced to close or impacted. £60m has been distributed to over 5,000 businesses.  We are currently administering business grants for those businesses required to close and who have been impacted by the localised restrictions. In addition, £30m is being channelled via Sheffield City Region, to provide additional financial support to businesses impacted by the localised and national restrictions.”

In accordance with Council Procedure Rule 13.10, Mr. Bluff asked the Mayor, the following supplementary question:-

“Thank you for your response Mayor Jones.  I have checked the documentation and legislation you quoted in your response, and I believe there is no need for a change in legislation.  Would it be possible for some of the funds that are maturing in this period, to be used as loans as described in the guidance documents you mentioned, as a potential less prudent method of raising funds for the Council, but could they be offered as loans to some of the businesses in Doncaster?”

In response, the Mayor gave the following reply:-

“Thank you for your question.  The advice I have been given is that we have got to invest prudently and we take this through Council every year on how investments will be made, but I will refer your supplementary question to the Director of Corporate Services, and ask if there is any way.  However, given the advice we have been given, that will be very difficult to achieve, but there are other loans through the Sheffield City Region, if they meet the relevant criteria.”