Issue - meetings

The Council was required to receive as a minimum the following reports: -

·       An annual treasury strategy in advance of the year (March 2022).

·       A mid-year (minimum) treasury update report (January 2023).

·       An annual review following the end of the year describing the activity compared to the strategy (the report now before Members this evening).

The Leader of the Council introduced the report which was required in accordance with the CIPFA Code of Practice on Treasury Management.

The report had been recommended for approval by the Corporate Policy and Resources Committee of 7 June 2023 and had been written during a time of high inflation levels and high interest rates which had not been experienced for some time.  The report contained a commentary on the Council's treasury position from the Section 151 Officer and also included a commentary from the Council’s economic and treasury advisors.

The main parts of the report showed that interest rates had been rising and therefore the Council’s investments had benefitted from this, generating £544k during 2022/23. This had overachieved the original budget by £395k.  Through close monitoring of cashflow and the capital programme underspending during the year, external borrowing had not been increased.  This had meant that the exposure to increased costs payable had been minimised.

The debt maturity profile table set out at section 4 of the report showed that some existing borrowing would need to be refinanced in the short term, and this would mean higher rates would be payable on loans.

Section 3 of the report showed that the Council's Capital Financing requirement had reduced during 2022/23 mainly due to the setting aside of minimum revenue provision in the year, which was in line with the Treasury Management Strategy.

The treasury management indicators were detailed throughout the report, and there had been no breaches of the prudential indicators during 2022 /23.

The final part of the report was an economics update which had been supplied by The Council’s Treasury Advisors and was considered useful in understanding the national and international context the Council was operating within when undertaking its treasury activities.

Members complimented the Officers on the level of detail included within the report and in particular its attempt to contextualise the Council’s position with the national position.  Members also sought some clarification around interest rates payable to the Public Works Loans Board and Government gilts.

Having been proposed and seconded it was

RESOLVED that the recommendation from the Corporate Policy and Resources Committee be accepted and the Annual Treasury Management Report and actual Prudential Indicators for 2022/2023 be approved.

The Committee gave consideration to the Annual Treasury Management Report 2022/23, as presented by the Financial Services Manager. He explained that it provided the Committee with an update on progress against the treasury strategy which was approved by Council in March 2022 for the 2022/23 financial year.

The report was required to comply with the CIPFA code of practice on treasury management and also to keep Members updated with the current situation. The update contained commentary on the Council’s treasury position, and on the economy, by the Council’s treasury advisors Link Asset Services.

The report demonstrated that interest rates had been rising and therefore the Council had benefited from increased interest rates on its investments, generating £544k during 2022/23. Through closely monitoring cashflow and the capital programme underspending in year, external borrowing had not been increased during the year. 

It was reported that the Council’s Capital financing requirement had reduced during 2022/23, mainly due to setting aside Minimum Revenue provision in the year which was in line with the treasury management strategy. The Treasury management indicators were detailed and confirmation was provided that there had been no breaches of the prudential indicators during 2022/23.

The final part of the report provided an economics update which had been supplied by the treasury advisors and was useful in understanding the national and international context in which the Council was operating when undertaking its treasury activities.

The Chairman and Members of the committee expressed their thanks to the Officer for his work and presentation. A Member of the Committee highlighted that the report demonstrated the long-term successful management of the Council’s finances up to this point, and stated that wise investments had obviously tracked well over the years. He noted it would be important to maintain that stability moving forward.

On being moved, seconded and put to the vote, it was unanimously

RESOLVED that the Annual Treasury Management Report and actual Prudential Indicators 2022/23 be recommended to Full Council for approval.