Investment Policy and Strategy

About this item

Overview

The Investment Policy and Strategy 2024–2026 outlines how Kesgrave Town Council invests public funds safely, securely, and in line with legislation. It ensures the Council manages its resources prudently and transparently, maintaining strong governance over all financial decisions.

Purpose

This strategy sets out how the Council will protect and manage its temporary surplus funds, in accordance with Section 15(1)(a) of the Local Government Act 2003 and the Statutory Guidance on Local Government Investments (3rd Edition). The priority is to ensure:

• Security – protecting capital from loss.
• Liquidity – maintaining availability of funds when needed.
• Yield – achieving appropriate returns consistent with risk management.

Investment Approach

All investments are made in sterling and comply with statutory guidance on specified (high security, high liquidity) and non-specified investments. Kesgrave Town Council currently holds funds with:

• Barclays Active Saver Account (instant access)
• Barclays Business Current Account (instant access)
• Flagstone Deposit Account (short-term deposits)

The Council does not engage in high-risk or speculative investments and does not hold long-term investments (over 12 months).

Governance and Review

The Finance and Governance Committee oversees all investments. The Responsible Finance Officer (RFO) manages transactions and reports regularly to the Committee. Investment activity and forecasts are reviewed annually, and credit ratings are monitored quarterly.

The policy is formally reviewed every two years and approved by Full Council before the start of a financial year. Amendments may be made at any time with Council approval.

Flagstone Account Procedures

In 2024, Kesgrave Town Council opened a Flagstone Saving Platform account for secure short-term deposits. The account enables the Council to diversify investments across multiple banks without separate applications. All transactions are managed by the RFO and Town Clerk, verified by two authorised individuals, and reported to Full Council at least every six months.

Committee members have read-only access for transparency, and all documentation is printed, signed, and securely retained.

Accountability and Transparency

This policy ensures compliance with the Freedom of Information Act 2000 and the Transparency Code for Smaller Authorities. The strategy is published on the Council’s website and available on request in alternative formats.

Download

Download Investment Policy and Strategy 2024–2026 (PDF)

Contact: For financial or investment-related enquiries, email enquiry@kesgravetowncouncil.gov.uk .