Issue - meetings

BCP Council has recently retendered its banking supplier and Barclays was chosen as the successful supplier.

As per the Charter Trustees Financial regulations the banking arrangements, including the bank mandate, shall be made by the Responsible Finance Officer and approved by the Charter Trustees.

This report gives two options for future banking arrangements which needs to be agreed in order to meet the statutory deadline of setting a Council Tax precept and associated budget by 31 January 2022. The options are either to join the BCP Council selected supplier of Barclays or continue with HSBC.

Depending on the option selected will have implications in terms of the budget presented in agenda item 6 on tonight’s agenda.

Matthew Filmer, the Responsible Financial Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book on Future Banking Arrangements for the Charter Trustees.

Charter Trustees were reminded that BCP Council had recently retendered its banking supplier and Barclays had been chosen as the successful supplier.  As per the Charter Trustees Financial regulations the banking arrangements, including the bank mandate, should be made by the Responsible Finance Officer and approved by the Charter Trustees.

The report set out options for future banking arrangements and the preferred option needed to be agreed in order to meet the statutory deadline of setting a Council Tax precept and associated budget by 31 January 2022.

The Responsible Financial Officer referred to the concern that had previously been raised regarding Barclays environmental credentials in respect of investments in fossil fuels.  He explained that he would not comment on environmental aspects as it was possible that this could apply to other high street banks.  The Responsible Financial Officer reported that for the Council the security of public funds has to be and would always be the priority when selecting a banking provider.

The Charter Trustees were advised of three options available which were to join the BCP Council selected supplier of Barclays which has no associated costs for the Charter Trustees with the advantage of having investment income as part of the pooled arrangements that exist, the second option was to continue with HSBC with an estimated cost of £2,250 which would include a loss of investment income, being charged for bank charges, an increase in the accountancy recharge due to the additional administration and one off system costs in terms of set up.  The Charter Trustees were advised that the reason for these costs was because the Council was streamlining its processes reducing from three bank accounts into one and moving income processing to an automated system. The Responsible Financial Officer reported that the other option was for the Charter Trustees to retender the contract for a bank provider and those costs had been estimated at £6,750 plus additional costs for financial and procurement to support the process.  He reported that it was important to note that the Council had a number of priorities including the transformation programme so it was unlikely that a retendering exercise could be supported in the short term.  The Responsible Financial Officer reported that his recommendation would be to join the Barclays contract whilst acknowledging there may potentially be a reputational risk associated with joining the contract but that could apply to other bank suppliers in the market.  The second recommendation would be to continue with HSBC whilst being aware of the associated costs and the proposal to retender for a new bank supplier should be discounted as the Charter Trustees need to set a budget and precept by 31 January 2022.

In response to a question the Responsible Financial Officer  ...  view the full minutes text for item 39