Issue - meetings

To receive a report from the Cabinet on recommendations referred to Council in relation to the Treasury Management Annual Report 2023/24.

The Portfolio Holder for Corporate Finance, Property and Resources, Councillor Cox, introduced the report and moved the recommendation. Councillor Allnatt seconded the motion.

No comments were made during the debate.

RESOLVED

Council

Approved the Treasury Management Annual Report 2023/24 as outlined at Appendix A.

(Unanimous)

At 8:34pm, during the consideration of this item, Councillor Higgins entered the meeting.

A report providing a summary of the Treasury activities in 2023-24. The report also covers the actual position on the Prudential Indicators in accordance with the Prudential Code.

Cabinet

1)    RECOMMENDED to Council the approval of the Treasury Management Annual Report 2023-24;

2)    NOTED the actual position of the Prudential Indicators for 2023-24.

Councillor Sarah Cox, Portfolio Holder for Corporate Finance, Property and Resources introduced the report, the purpose of which was to provide a summary of the Treasury activities in 2023-24 and the actual position on the Prudential Indicators in accordance with the Prudential Code.

Councillor Cox thanked the Finance Team for their work in maximising Council investments over the past year, noting that the Council continued to perform exceptionally well against its benchmarking group and this had significantly assisted the Council’s financial position.

Councillor Cox confirmed that no new borrowing had been undertaken in year and borrowing remained within statutory limits.  The investment return for the year was 5.07% again, significantly assisting the Council’s financial position for the past year and offsetting increased costs caused by inflation and mitigating the financial pressures being faced by both the General Fund and the Housing Revenue Account (HRA).

Councillor Cox advised that the Council currently held £2m in a property fund, which had seen good returns, benefiting the Council’s Revenue Account.  However, the Council continued to carry a notional loss of £225k in the valuation of that fund.  Recognising the risk to the income and expenditure account, the Finance Team had set up a fund to prepare if the loss was realised.

Councillor Cox moved the recommendations and the Leader seconded the motion.

Cabinet

1)    RECOMMENDED to Council the approval of the Treasury Management Annual Report 2023-24;

2)    NOTED the actual position of the Prudential Indicators for 2023-24.

(Non-key Decision)

Reasons for the Recommendations:

It is important that Cabinet are aware of the Council’s Treasury Management performance to ensure they can make informed decisions that protect the Council’s financial assets while taking regard of financial stability and potential returns.

The Annual Treasury Report is a requirement of the Council's reporting procedures.

The report meets the requirements of both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Council is required to comply with both codes through Regulations issued under the Local Government Act 2003.