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 by regulations issued under the Local Government Act 2003 to produce an annual treasury management review and outlined treasury activity for 2021/22.

The report also sought Members approval of the Prudential Indicator results for 2021/22 in accordance with the Prudential Code.

It was reported that the financial year 2021/22 was another unprecedented year with regard to treasury management due to the ongoing Covid-19 pandemic.  Cost of borrowing remained low throughout 2021/22 and due to the Covid-19 pandemic the cost of shorter term borrowing was anticipated to remain low 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 2021/22; the Council’s underlying borrowing need; the Treasury position as at 31 March 2022; prudential indicators and compliance issues; the economic background for 2021/22; a summary of the Treasury Management Strategy agreed for 2021/22; and performance and risk benchmarking.

It was also reported that the Council’s treasury management activity during 2021/22 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 £0.366m had been achieved from the original Medium-Term Financial Plan.

RESOLVED – (a) That the outturn 2021/22 Prudential Indicators within the submitted report and those in Appendix 1 be noted.

(b) That the Treasury Management Annual Report for 2021/22 be noted.

(c) That the submitted report be forwarded to Cabinet and Council in order for the 2021/22 Prudential Indicators to be noted.