Decision details

The Cabinet Member with the Resources Portfolio introduced the report (previously circulated) of the Group Director of Operations providing important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow; treasury activity for 2023/24; and seeking approval of the Prudential Indicator results for 2023/24 in accordance with the Prudential Code.

It was reported that the financial year 2023/24 was yet another unprecedented year with regard to treasury management due to a number of issues including the continuing conflict in Ukraine; events in the Middle East; inflation taking time to recover; the cost of borrowing continuing to rise steadily throughout the early part of the year; and that although the returns for cash investments had increased to higher interest rates they still remained below the cost of borrowing.  The Council had complied with its legislative and regulatory requirements.

The submitted report summarised the capital expenditure and financing for 2023/24; the Council’s overall borrowing need; the Treasury position as at 31 March 2024; prudential indicators and compliance issues; the economic background for 2023/24 treasury management activity during 2023/24; investment position; and performance and risk benchmarking.

It was also reported that the Council’s treasury management activity during 2023/24 had been carried out in accordance with the Council policy and within legal limits; financing costs had been reduced during the year; and a saving of £0.735m had been achieved from the original Medium-Term Financial Plan.

RESOLVED - (a)  That the outturn 2023/24 Prudential Indicators, as detailed within the submitted report and in Appendix 1 to the submitted report, be noted.

(b)  That the Treasury Management Annual Report for 2023/24, as detailed in the submitted report, be noted.

(c)  That the report be forwarded to Council, in order for the 2023/24 Prudential Indicators to be noted.

REASONS - (a)  In order to comply with the Prudential Code for Capital Finance in Local Authorities.

(b)  To inform Members of the Performance of the Treasury Management function.

(c)  To comply with the requirements of the Local Government Act 2003.