Issue - meetings

Councillor Anne Welburn in her capacity as Chairman of the Corporate Policy and Resources Committee, presented the report which sought approval of the Mid Year Treasury Report 2020/21.

The report had been  presented to the Corporate Policy and Resources Committee at its meeting on 5 November, where it had been fully considered and debated.

The report complied with all statutory requirements and the Treasury Management Code.

There had been no changes to the Treasury Management and Investment Strategy.

The report detailed the treasury activity over the period April to September and reflected the impact of the approved Revised Capital Budget for 2020/21, also presented to Corporate Policy and Resources on 5 November 2020.

This had resulted in some changes to the Treasury and Prudential Indicators which required the approval of Full Council.

It was forecast that the Council would have £14.726m invested by the year end and that external borrowing would be £23m.

The Chairman expressed thanks to the Treasury Team who continued to effectively manage the Authority’s cash flows and had recently received a High Assurance rating from the Internal Auditor.

Councillor Welburn concluded her presentation by moving the recommendations.

In the ensuing debate Members welcomed the inclusion of Executive Summary and commented on its usefulness.

Members sought indication as to whether the position had substantially changed since the time of the reports writing.  Some questioned whether the report could have been brought sooner. Whilst the position had remained unchanged the S151 Officer outlined how the downturn in interest rates for some of the Council investments would affect the Council’s projected returns, and how the reduced counter-party list continued to limit options.  The Council would always seek to invest wisely but securing returns on investments was difficult in the current market.

Officers outlined the various stages and approvals required prior to presenting the Mid-Year Review to Council and gave assurance that this matter had been progressed at the anticipated rate.

In response to further questions, Officers confirmed that the Council’s investments made through its Commercial Property Portfolio continued to perform well and almost as expected returning around 6%.

Having being seconded and on being put to the vote it was: -

RESOLVED that the recommendation fromthe Corporate Policy and Resources Committee be accepted and the Mid-Year Treasury Management Report be approved together with the changes to Prudential Indicators as detailed within the report.