Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to submit a report, which provides a summary of the Treasury activities in 2019-20.  The report also covers the actual position on the Prudential Indicators in accordance with the Prudential Code.

Cabinet

(1)  APPROVED the Treasury Management Annual Report for 2019-20 for submission to Council;

(2)  NOTED the actual position on Prudential Indicators for 2019-20

Dawn Garton, Director for Corporate Services introduced the report, the purpose of which was to provide a summary of the Treasury activities in 2019-20.  The report also covered the actual position on the Prudential Indicators, in accordance with the Prudential Code.

Mrs Garton advised that the following Cabinet approval, the report would be submitted to Council next week.

Mrs. Garton highlighted the following key points:

·         The Council took no new borrowing in year and borrowing remained within the Council’s statutory borrowing limit

·         The Council achieved a 1.25% investment return for the year, which was an increase over the previous year.  This had generated an additional £138k across the General Fund and Housing Revenue Account.

·         The Council needed to exercise caution.  The outlook for the current financial year was much lower and there were challenging times ahead for investments as a result of COVID-19.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources thanked the Director for Corporate Services and her team for their work, adding that the additional £138k, which the Council’s treasury management activities had accrued last year highlighted the team’s success in that area.

Councillor de Burle reiterated that there was currently much uncertainty in the markets and it was vital that the Council acted with caution.

During discussion, the following points were noted:

·         Members expressed thanks to the Portfolio Holder for Corporate Finances and Resources and the Director for Corporate Services for their work.

·         The 1.25% increase on investment was encouraging.  The Council should continue to utilise the money it held, including consideration of investment in stocks and shares, however, it was noted that this involved greater risks.

Cabinet

(1)  APPROVED the Treasury Management Annual Report for 2019-20 for submission to Council;

(2)  NOTED the actual position on Prudential Indicators for 2019-20

Reasons for the decision

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.