Issue - meetings

Treasury Management Report - December 2021

Meeting: 08/02/2022 - Cabinet (Item 329)

329 Recommendation of the Performance and Audit Scrutiny Committee: 27 January 2022 - Treasury Management Report (December 2021) (Report number: CAB/WS/22/007) pdf icon PDF 127 KB

Report number:     CAB/WS/22/007

Portfolio holder: Councillor Sarah Broughton

Chair of the Committee: Councillor Ian Houlder

Lead officer: Rachael Mann


Recommended to Council: (22 February 2022):


That the Treasury Management Report (December 2021), as contained in Report number: FRS/WS/22/001, be approved.


The Cabinet considered this report, which was recommending to Council, the approval of the Treasury Management Report for the third quarter of the 2021 to 2022 financial year.


Councillor Sarah Broughton, Portfolio Holder for Resources and Property, drew relevant issues to the attention of Cabinet, including that the total amount invested at 31 December 2021 was £76,500,000. Interest achieved in the first nine months of the financial year amounted to £53,087 against a budget for the period of £33,750. 


External borrowing as of 31 December 2021 increased to £14,000,000 from £4 million at 30 September 2021.  Correspondingly, the Council’s level of internal borrowing reduced to £37,675,406 as at 31 December 2021.  Overall borrowing, both external and internal was expected to increase over the full financial year, but not by as much as was originally budgeted for.  Borrowing costs (interest payable and Minimum Revenue Provision (MRP)) for the year were forecast to be £1,026,452 against an approved budget of £3,135,850, although this could change if more external borrowing was undertaken than was currently forecast.  The difference would be placed in the capital financing reserve to use towards future interest rate fluctuation.


The 2021 to 2022 Annual Treasury Management and Investment Strategy set out the Council’s projections for the current financial year.  The budget for investment income in 2021 to 2022 was £45,000, which was based on a 0.25 percent target average interest rate of return on investments.


Report number: FRS/WS/22/001 also included a summary of the borrowing activity during the period; borrowing strategy and sources of borrowing; borrowing and capital costs – affordability; borrowing and income – proportionality; borrowing and asset yields; Prudential Code, Treasury Management Code and MRP consultation and market information. 


The Cabinet noted the scrutiny of the report undertaken by the Financial Resilience Sub-Committee and subsequently by the Performance and Audit Scrutiny Committee (PASC), noting from Report number: CAB/WS/22/007, the discussions that had been held.


Having been invited by the Chair to speak on this item, Councillor Houlder, Chair of PASC stated that representatives of the Council’s appointed treasury management advisors, Arlingclose, had been invited to a future meeting of the PASC to give further detail on the service they provided to the Council. 



Recommended to Council: (22 February 2022):


That the Treasury Management Report (December 2021), as contained in Report number: FRS/WS/22/001, be approved.