Agenda item

Report of the Group Director of Operations

The Group Director of Operations submitted a report (previously circulated) to inform Members of important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow.  It is 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 that covers treasury activity for 2021/22.  The report also sought to approve the Prudential Indicators results for 2021/22, in accordance with the Prudential Code.

The submitted report outlined the circumstances with regard to treasury management for 2021/2022, and stated that it was another 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 2021/22.

The submitted report stated that the Council had complied with its legislative and regulatory requirements during 2021/2022, and that the need for borrowing was only increased for capital purposes.

The submitted report stated that at 31st March 2022, the Council’s external debt was £149.649m, which was £11.882m 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 reduced from 2.76% in 2020/21 to 2.47% in 2021/22, and that investments totalled £63.399m at 31st March 2022, in comparison to £59.399m at 31st March 2021, earning interest of 0.21% on short term cash investments, and 2.21% on Property Fund units net of cost.

It was reported that financing costs had been reduced during the year and a saving of £0.366m had been achieved from the original MTFP due to reduced interest on debt, as well as increased investment income, especially from property funds.

RESOLVED - (a) That the outturn 2021/22 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 2021/22 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.