Agenda item

Report of the Group Director of Operations

The Group Director of Operations submitted a report (previously circulated) to provide important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow, as a requirement of the Council’s reporting procedures and outlined treasury activity for 2020/21.

The report also sought Members approval of the Prudential Indicators for 2020/21 in accordance with the Prudential Code.

It was reported that the financial year 2020/21 was an unprecedented year with regard to treasury management due to the ongoing Covid-19 pandemic.  Cost of borrowing remained low throughout 2020/21 and due to the Covid-19 pandemic the cost of shorter term borrowing was anticipated to remain low for a number of years in the future.  However, as Members are aware due to the recent low returns for cash investments new ways to improve investment returns are continually being sought.

The submitted report summarised the capital expenditure and financing for 2020/21; the Council’s underlying borrowing need; the Treasury position as at 31 March 2021; prudential indicators and compliance issues; the economic background for 2020/21; a summary of the Treasury Management Strategy agreed for 2020/21; and performance and risk benchmarking.

It was also reported that the Council’s treasury management activity during 2020/21 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 £0.265m had been achieved from the original Medium-Term Financial Plan.

RESOLVED – (a) That the outturn 2020/21 Prudential Indicators within the submitted report and those in Appendix 1 be noted.

(b) That the Treasury Management Annual Report for 2020/21 be noted.

(c) That the submitted report be forwarded to Cabinet and Council in order for the 2020/21 Prudential Indicators to be noted.