Issue - meetings
Treasury Management Mid-Year report 2021-22
Meeting: 17/01/2022 - Cabinet (Item 15)
This report updates Members on treasury activity for the first half of the financial year 2021-22.
- 15a. Appendix 1 - Treasury Management Indicators, item 15 PDF 133 KB
- Webcast for Treasury Management Mid-Year report 2021-22
Cabinet RESOLVED to note the 2021-22 Mid-Year Treasury report and approve it being forwarded on to Council, in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).
Councillor McLennan (Deputy Leader, Lead Member for Resources and Interim Lead for Children’s Safeguarding, Early Help and Social Care) introduced a report updating Members on Treasury Management activity for the first half of the financial year 2021-22.
In considering the report Members noted the economic context under which the Council’s Treasury Management Strategy had been operating and update provided in relation to the Council’s debt management position, as detailed within section 3.14 – 3.24 of the report. Members were advised that the Council had undertaken minimal borrowing through the first half of the year. The estimated borrowing requirement for the remainder of the financial year 2021/22, which took account of the Council’s ongoing capital financing requirement, usable reserves, planned capital expenditure and minimum revenue provision, had been identified as £60m. Members were advised that the Council’s main objective when borrowing remained to ensure an appropriate balance between securing low interest costs and achieving cost certainty. In terms of long term borrowing options, the Public Works Loan Board (PWLB) remained the main source given the relatively low current funding margins, however, other low cost forward funding options also continued to be explored as opportunities arose. Members’ attention was also drawn to the standard rates at which local authorities could borrow from the Public Works Loan Board (PWLB) along with the change in lending arrangements, designed to ensure that assets were not being invested by Local Authorities primarily for yield.
Members also noted the update provided in relation to the Council’s Treasury Investment Activity, as detailed in sections 3.25 – 3.34 of the report with most of the Council’s funds currently being held in Money Market Funds.
Members welcomed the report and approach being delivered in terms of the Council’s Treasury Management activity to support delivery of the Council’s wider ambitions and priorities, particularly in relation to housing and regeneration. Having noted the assurance provided that the Council had complied with the Treasury Management Indicators for 2021/22, as detailed within Appendix 1 of the report Cabinet RESOLVED to note the 2021-22 Mid-Year Treasury report and approve it being forwarded on to Council, in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).