Agenda item

Treasury Management Annual Report and Outturn Prudential Indicators 2020/21

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. The submitted report also sought approval of the Prudential Indicators results for 2020/2021, in accordance with the Prudential Code.


The submitted report outlined the circumstances with regard to treasury management for 2020/2021, and stated that it was an unprecedented year with regard to treasury management due to the ongoing Covid-19 pandemic. It was reported that the cost of borrowing remained low throughout 2020/21, and that due to the Covid-19 pandemic it was anticipated that the cost of shorter term borrowing would remain low for a number of years in the future.


The submitted report stated that the Council had complied with its legislative and regulatory requirements during 2020/2021, and that the need for borrowing was only increased for capital purposes.


The submitted report stated that at 31st March 2021, the Council’s external debt was £161.531m, which was £20.130m less than the previous year. It was stated that this reduction related to not re-borrowing for matured debt due to an increase in the level of monies received by the Council. It was reported that the average interest rate for borrowing increased from 2.60% in 2019/20 to 2.76% in 2020/21, and that investments totalled £59.399m at 31st March 2021, in comparison to £56.799m at 31st March 2020, earning interest of 0.60% on short term cash investments, and 2.33% on Property Fund units net of cost.


It was reported that financing costs had been reduced during the year and a saving of £0.265m had been achieved from the original MTFP due to reduced interest on debt.


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


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

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