RPC Investment Strategy
Rauceby Parish Council
P8 RPC Investment Strategy
Adopted: 21 January 2026: Next Review: May 2027
1. Purpose
This document sets out how Rauceby Parish Council will manage its surplus funds responsibly. Although councils with an annual turnover below £100,000 are not required by law to publish an Investment Strategy, the Parish Council has chosen to do so as a matter of good practice and transparency. The Parish Council currently holds approximately £15,000 in its bank accounts; this varies from year to year.
2. Principles
The Council’s priorities when investing are:
* Security – keeping public money safe.
* Liquidity – ensuring money is available when needed.
* Yield – obtaining a reasonable return without compromising security or liquidity.
3. Investment Arrangements
* The Council will only use UK banks, building societies, or public sector bodies regulated and protected by the Financial Services Compensation Scheme (FSCS) or equivalent.
* Day-to-day funds will be held in a current account to ensure liquidity.
* Surplus funds not required for immediate use will normally be placed in interest bearing deposit or savings accounts with suitable institutions.
* The Council does not intend to use long-term or high-risk investments, such as stocks, shares, or non-UK financial institutions.
4. Monitoring & Review
* The Clerk/ Responsible Financial Officer (RFO) will monitor bank balances and investment performance and report to Council at least quarterly.
* This strategy will be reviewed annually as part of the budget-setting process, or sooner if there are significant changes to the Council’s financial position.