Agenda item

Report of the Group Director of Operations

The Group Director of Operations submitted a report (previously circulated) to seek Members approval of the revised Treasury Management Strategy, Prudential Indicators and provide Members with a mid-yearly review of the Council’s borrowing and investment activities.

It was reported that the mandatory Prudential Code, which governs Council’s borrowing, required Council approval of controls, called Prudential Indicators, which related to capital spending and borrowing; and the indicators were set out in three statutory reports namely, a forward looking annual treasury management strategy, a backward looking annual treasury management report and this mid-year update (which follows Council approval in February 2022 of the 2022/23 Prudential Indicators and Treasury Management Strategy).

The key objectives of the three annual reports were set out in the submitted report, together with the key proposed revisions to the prudential indicators which related to a reduction in the Operational Boundary to £156.699m and the Authorised Limit to £239.879m to allow for any additional cashflow requirement.

With regard to Capital Expenditure, the submitted report highlighted the original elements of the capital programme and the revised estimates for 2022/23; and the reduction in Borrowing Need which was around £25.1m due to slippage in the Housing Programme and the Railway Heritage Quarter which was predominately grant funded.

Reference was also made to investments to include £30m in property funds which was expected to increase the net return on investments by around £0.340m in future years; and the Treasury Management Budget which was forecast to Outturn on budget in 2022/23, this will be reflected in the current MTFP projections.

Members discussed Table 7 of the submitted report and the recent increase in the interest rates and agreed that the report be updated prior to submission to Cabinet to reflect the current position regarding the interest rates.

RESOLVED – That the submitted report, with an update on the current position of interest rates, be referred to Council via Cabinet and that it be advised that this Audit Committee approves the revised prudential indicators and limits; and notes the Treasury Management Budget (Financing Costs) projected outturn.