Issue - meetings

This report provides an update on treasury activities for the first half of the financial year 2020-21.

Cabinet RESOLVED to note the 2020-21 Mid-Year Treasury report and agree that it be forwarded on to Council, in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).

Councillor McLennan, as Deputy Leader and Lead Member for Resources, introduced the report providing an update on treasury activities for the first half of the financial year 2020/21. The report ensured that the Council was embracing best practice in accordance with the CIPFA Code of Practice on Treasury Management (the Code) including informing members of treasury activities on a twice-yearly basis.

Members noted the updated provided within section 3 of the report on the current economic background in relation to treasury management activity and the impact of the pandemic, along with the Council debt management activity in relation to both short and longer-term borrowing.  In accordance with the Council’s main Treasury Management objectives, new external borrowing had been kept to a minimum as the Council considered it more cost-effective in the near term to use internal resources and borrow short-term loans to manage cash flow.  Further borrowing would be required during 2020/21 to cover planned capital expenditure.  Given the more favourable rates currently available, the Council would continue to borrow from the Public Works Loan Board (PWLB) but also recognised the need to maintain diversity in its funding sources and would therefore continue to evaluate and pursue lower cost solutions and opportunities as they arose.

In terms of investment activity, Members were informed that the Council had received a number of central government grants to cover activities related to the pandemic, some of which had been temporarily invested in highly secure deposits with the Government’s UK Debt Management Account Deposit Facility before being disbursed by the end of September.  The Council’s current investment position had been detailed in section 3.26 of the report with investment balances at the end of September totalling £24.1m.

Having considered the update, Cabinet RESOLVED to note the 2020/21 Mid-Year Treasury report and agree that it be forwarded on to Council in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).