Policies and Procedures

Investment Strategy (February 2026)

CROWLAND PARISH COUNCIL

Investment Strategy

 

Introduction and Purpose

This Investment Strategy is prepared in accordance with Section 15(1)(a) of the Local Government Act 2003 and the Statutory Guidance on Local Government Investments (3rd Edition, 2018).

Crowland Parish Council anticipates that its total investments may exceed £100,000 during the financial year. The Council is therefore required to adopt and publish a formal Investment Strategy.

The purpose of this document is to outline how the Council will manage public funds prudently, ensuring transparency, accountability, and sound financial stewardship.

Investment Objectives

Crowland Parish Council’s investment priorities are:

  • Security

Safeguarding the capital sum from loss.

  • Liquidity

Ensuring funds are available when required to meet expenditure.

  • Yield

Achieving a reasonable return consistent with security and liquidity.

The Council does not invest for speculative purposes.

Scope of Investments

Approved Investment Types

The Council may invest in:

  • UK banks and building societies regulated by the FCA
  • Public Sector Deposit Funds
  • Local Authority‑controlled financial institutions
  • Short‑term fixed‑term deposits
  • Interest‑bearing current or savings accounts

Crowland Parish Council owns eight residential bungalows, which form part of the Council’s fixed asset portfolio. These properties are held for community benefit and operational purposes.

Prohibited Investments

The Council will not invest in:

  • Foreign currency deposits
  • Shares, corporate bonds, or other market‑traded securities
  • Derivatives or high‑risk financial instruments
  • Non‑financial investments (e.g., property) unless approved by Full Council with a full business case

Risk Management

Counterparty Risk

Investments will only be placed with institutions that are:

  • UK‑based
  • FCA‑regulated
  • Holding satisfactory credit ratings (where applicable)
  • Included on the Council’s approved counterparty list

Diversification

To reduce exposure, the Council will avoid placing more than £120,000 with any single institution, unless operationally unavoidable.

Liquidity Risk

The Responsible Financial Officer (RFO) will ensure sufficient funds remain accessible to meet:

  • Day‑to‑day expenditure
  • Payroll
  • Emergency contingencies
  • Known future commitments

Maturity Risk

The Council will avoid long‑term deposits unless:

  • Cash flow forecasts confirm funds are not required
  • Full Council approves the term

Governance and Decision‑Making

Authority to Invest

  • Full Council approves the Investment Strategy annually.
  • The RFO is authorised to implement the Strategy and manage day‑to‑day investment decisions.
  • All investment decisions must be reported to Full Council.

Monitoring and Reporting

The RFO will provide:

  • Quarterly reports on balances, interest earned, and compliance
  • Immediate notification of any emerging risks or breaches

Review

This Strategy will be reviewed annually, or sooner if:

  • Legislation changes
  • The Council’s financial position changes significantly
  • The Council’s risk appetite changes

Ethical Considerations

Crowland Parish Council will avoid investments that conflict with its values or may damage public confidence. This includes avoiding institutions engaged in unethical or high‑risk activities.

Transparency and Publication

This Strategy will be:

  • Published on the Council’s website
  • Available to the public on request
  • Included in the Council’s annual governance documentation

Adopted/Reviewed by the Parish Council: 2nd February 2026

Next Review Date: 2nd February 2027