Agenda item

Report of the Group Director of Operations.

The Cabinet Member with the Resources Portfolio introduced the report of the Group Director of Operations (previously circulated) providing important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow; treasury activity for 2022/23; and seeking approval of the Prudential Indicator results for 2022/23 in accordance with the Prudential Code.

It was reported that the financial year 2022/23 was yet another unprecedented year with regard to treasury management due to a number of issues including the invasion of Ukraine, the cost of living increases, and inflation; the cost of borrowing had been rising steadily throughout 2022/23; although the returns for cash investments had increased to higher interest rates they still remained below the cost of borrowing; and that the Council had complied with its legislative and regulatory requirements.

The submitted report summarised the capital expenditure and financing for 2022/23; the Council’s overall borrowing need; the Treasury position as at 31 March 2023; prudential indicators and compliance issues; the economic background for 2022/23 treasury management activity during 2022/23; investment position; and performance and risk benchmarking.

It was also reported that the Council’s treasury management activity during 2022/23 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 £0.194m had been achieved from the original Medium-Term Financial Plan.

RESOLVED - (a)  That the outturn 2022/23 Prudential Indicators, as detailed within the submitted report and in Appendix 1, be noted.

(b)  That the Treasury Management Annual Report for 2022/23, as detailed in the submitted report, be noted.

(c)  That the report be forwarded to Council, in order for the 2022/23 Prudential Indicators to 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.