Issue - meetings

This report updates members on Treasury Management activity and confirms that the Council has complied with its Prudential Indicators for 2021/22.

Cabinet RESOLVED:

(1)    To note the 2021/22 Treasury Management Outturn report and approve it being referred on to Full Council for final consideration and approval, in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).

(2)    To note that for 2021/22 the Council had complied with its Prudential Indicators which were approved by Full Council on 22 February 2021 as part of the Council’s Treasury Management Strategy Statement and Capital Strategy Statement.

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance, Resources & Reform) introduced a report updating members on Treasury Management activity during 2021-22.

In considering the report Cabinet noted the economic background in relation to the current outturn position.  This included the continuing economic challenges arising from the pandemic recovery, which had been further exacerbated by the war in Ukraine and sharp increases in both inflation and interest rates.  In terms of a local context, members were advised that the Council’s total level of borrowing as of 31 March 22 was £684.6m arising from its capital expenditure with the underlying need to borrow for capital purposes measured through the Capital Financing Requirement (CFR), usable reserves and working capital.  The underlying resources available for investment totalled £98.6m.  In noting the prudential requirements within the CIPFA Code, the Council’s objective in terms of investment remained to strike an appropriate balance between risk and return with a balanced portfolio of short and long term borrowing maintained.

Member’s attention was also drawn to the revised Prudential Code for Capital Finance and Treasury Management Code published in December 2021, which included key changes around permitted reasons to borrow, knowledge and skills and the management of non-treasury investments.  In addition, HM Treasury had issued revised guidance in August 2021 relating to the Public Works Loan Board (PWLB) lending facility, which now included examples of permitted and prohibited use of PWLB loans (including the purchase of investment assets primarily for yield).  Members noted that the revised reporting requirements within the Prudential Code would be introduced during the 2023/24 financial year.

Cabinet thanked officers for their work in relation to managing the Council’s Treasury Management activity and having considered the report RESOLVED:

(1)     To note the 2021/22 Treasury Management Outturn report and approve it being referred on to Full Council for final consideration and approval, in compliance with CIPFA’s Code of Practice on Treasury Management (the Code).

(2)     To note that for 2021/22 the Council had complied with its Prudential Indicators, which were approved by Full Council on 22 February 2021 as part of the Council’s Treasury Management Strategy Statement and Capital Strategy Statement.