Issue - meetings

The Chairman of the Corporate Policy and Resources Committee presented the report, which sought approval of the Mid-Year Treasury Report 2023/24 and changes to prudential indicators.

The report had been presented to the Corporate Policy and Resources Committee, where it had been fully considered and debated and stood referred to Council for approval.

Members were advised that the report was required to comply with the CIPFA code of practise on treasury management and also served to keep Members updated with the current situation.

The report showed the movements in the Council’s prudential indicators which have changed as a result of two things. The first being the Council closing its accounts for 2022/23 after the original strategy had been written. The second being, as a result of a revised capital programme for 2023/24, as outlined in the quarter two budget monitoring report considered previously by the Corporate Policy and Resources committee.

Councillor Young concluded his introduction by moving the recommendation, which was duly seconded. 

In responding to a question, Officers confirmed the movement in the capital programme and the need for re-profiling, referenced in paragraph 1.4 of the report, was primarily arising from the Levelling Up Programme. On being put to the vote it was:-

RESOLVED that the recommendation from the Corporate Policy and Resources Committee be accepted and as such the Mid-Year Treasury Management Report and treasury activity be noted and the changes to Prudential Indicators as detailed at Sections 5.2, 6.1 and 6.2 of the report be approved.

The Committee considered the report of the Director of Corporate Services which provided the Mid-Year update for Treasury Management Indicators in accordance with the Local Government Act 2003.

The Financial Services Manager introduced the report and clarified that the report was required to comply with the CIPFA code of practise on treasury management and also to keep Members updated with the current situation. Members noted the report had been written during a time of high inflation and high interest rates and it contained commentary on the Council’s treasury position and included explanation by the Councils treasury advisors, Link Asset Services.

The main parts of the report showed that interest rates had been rising and could potentially increase further which meant the Council was currently receiving additional investment income as shown in the quarter two budget monitoring report which had been considered earlier in the meeting.  Members were also reminded however that the counter to this, was that if Council needed to borrow during these times of high interest rates, it would be more costly to source funds.

The report showed the movements in the Council’s prudential indicators which had changed as a result of the Council closing its accounts for 2022/23 after the original strategy was written and also as a result of a revised capital programme for 2023/24.

An economics update supplied by Link Asset Services was included in the report and provided an understanding of the national and international context the Council was operating within when undertaking its treasury activities.

Appendix B to the report gave the latest list of approved countries for investment as at 30 September but Members were advised that typically the Council only invested within the UK.

With no questions, having being proposed and seconded on being put to the vote it was: -

RESOLVED that the report and treasury activity be noted and the

revised prudential indicators detailed at sections 5.2, 6.1 and 6.2 of the repot be RECOMMENDED to Council for approval.