Issue - meetings

Treasury Management Report - December 2022

Meeting: 07/02/2023 - Cabinet (Item 441)

441 Recommendation of the Performance and Audit Scrutiny Committee: 26 January 2023 - Treasury management report: December 2022 pdf icon PDF 127 KB

Report number:     CAB/WS/23/006

Portfolio holder: Councillor Sarah Broughton

Chair of the Committee: Councillor Ian Houlder

Lead officer: Rachael Mann


Recommended to Council:

(21 February 2023)


That the Treasury Management Report (December 2022), as contained in Report number FRS/WS/23/001, be approved.


(Report number CAB/WS/23/006)


The Cabinet considered this report, which was recommending to Council, the approval of the Treasury Management Report from 1 April 2021 to 31 December 2022.


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 2022 was £71,5000,000.  Interest achieved in the first nine months of the financial year amounted to £639,193.67 against a budget for the period of £33,750.


External borrowing as of 31 December 2022 was £13,750,000, which was a reduction of £250,000 from 1 April 2022, which related to the repayment plan for the recent Public Works Loan (PWLB) £10 million, 40-year loan, with the Council’s level of borrowing increasing slightly to £42,309,057 as at 31 December 2022.  Overall borrowing, weighted towards internal borrowing was expected to increase over the full financial year.


The 2022 to 2023 Annual Treasury Management and Investment Strategy set out the Council’s projections for the current financial year.  The budget for investment income for 2022 to 2023 was £45,000, which was based on a 0.25 percent target interest rate of return on investments.


Report number FRS/WS/23/001 also included a summary of the borrowing activity during the period; borrowing strategy and source of borrowing; borrowing and capital costs – affordability; borrowing and income – proportionality; borrowing and asset yields and market information. 


The Performance and Audit Scrutiny Committee had also received further information regarding the repayment of the Barclays 70 year loan (which was due to mature in 2078).  Due to the rise in interest rates, the early repayment premium for the loan had come down from the previous quotes received.  The current Treasury Management Strategy allowed the Portfolio Holder (Resources and Property) and the Director (Resources and Property) to exercise their powers for paying off the loan early.  The Council had cash available at the present time to repay the loan and would, in future, replace this with short term borrowing (40 years or under) on a repayment basis, rather than the Barclays maturity repayment basis. At today’s borrowing rates, there would be a saving to the Council across the longer term for existing the Barclays loan now.  The Committee supported this approach.


The Cabinet noted the scrutiny of the report undertaken by the Financial Resilience Sub-Committee and subsequently by the Performance and Audit Scrutiny Committee, noting from Report number CAB/WS/23/006, the discussions that had been held.


Recommended to Council (21 February 2023):


That the Treasury Management Report (December 2022), as contained in Report number FRS/WS/23/001, be approved.