Issue - meetings

Report No:   CAB/WS/20/005

Portfolio Holder: Cllr Sarah Broughton       Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (25 February 2020)

That the Treasury Management Report (September 2019), being Report No: FRS/WS/19/004, be approved.

The Cabinet considered this report, which was recommending to Council, the approval of the Treasury Management Report for the period from 1 April 2019 to 30 September 2019.

Following the creation of West Suffolk Council, the total amount invested at 1 April 2019 was £42,750,000 and at 30 September 2019 £46,900,000. 

The 2019-2020 Annual Treasury Management and Investment Strategy set out the Council’s projections for the current financial year.  The budget for investment income in 2019-2020 was £142,141 which was based on a 0.90% target interest rate of return on investments.

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Cabinet, including that as at the end of September 2019, interest earned during the second quarter of the financial year amounted to £194,249 against a profiled budget for the period of £71,070; a budgetary surplus of £123,179.  The budgetary surplus related to higher than expected cash balances due to slippages in the Capital programme and also the favourable interest rates secured on the investments carried over from the previous councils.

As at the end of September 2019 a total of £14.5m had been borrowed internally from available cash balances. This had meant the Council had not had any additional borrowing over the long-term £4m loan.

Members also noted assumptions on borrowing for the capital projects included within it, alongside the current £4m external borrowing in respect of the previous Newmarket Leisure Centre build. This new borrowing requirement was based around three specific projects, as outlined in the report.

A summary of the capital borrowing budget for 2019-2020 was also noted, together with a summary of capital borrowing for quarter two; borrowing and income – proportionality; current borrowing as at 30 September 2019 and other market considerations.  The Government’s unexpected announcement on 9 October 2019, which stated they would be raising the margin applied to Public Works Loans Board loans by 1%, was of particular concern to the Cabinet.

RECOMMENDED TO COUNCIL: (25 February 2020)

That the Treasury Management Report (September 2019), being Report No: FRS/WS/19/004, be approved.