The Sub-Committee received report number
FRS/WS/23/001, which provided a comprehensive assessment on
investment activities for West Suffolk Council from 1 April 2022 to
31 December 2022.
The Council held investments of
£71,500,000 as at 31 December 2022. Interest achieved in the first nine months of the
financial year totalled £639,193.67 against a budget for the
period of £33,750.
External borrowing as at 31 December 2022 was
£13,750,000 a reduction of £250,000 from 1 April 2022
(this relates to the repayment plan for the recent PWLB £10
million 40-year loan), with the Council’s level of internal
borrowing increasing slightly to £42,309,057 as at 31
December 2022. Overall borrowing, which
was weighted towards internal borrowing was expected to increase
over the full financial year.
Borrowing costs (Interest Payable and MRP) for
the year was forecast to be £1,069,488 against an approved
budget of £2,268,350 although this could change if more
external borrowing was undertaken than was currently forecast.
The 2022 to 2023 Annual Treasury Management
and Investment Strategy Statements approved on 22 February 2022
sets 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 average rate of return on investments, set prior to
the current economic situation.
The report also included a summary of
borrowing activity during the period; borrowing strategy and
sources of borrowing; borrowing and capital costs –
affordability; borrowing and income – proportionality;
borrowing and asset yields and market information.
The Sub-Committee scrutinised the report in
detail and asked questions to which responses were provided.
In response to a question raised on whether
any progress had been made in relation to enquiries about paying
back the £4m Barclays loan, officers advised that the
Council’s Treasury Advisor, Arlingclose had made enquiries
and discussions were still ongoing with Barclays.
In response to a question raised on the
volatility of the markets, officers advised that the Council was
starting to see its investment rates rising, which were set out on
page 8 of the report.
In response to a question raised regarding
external borrowing, officers advised that it did not envisage the
Council needing to borrow externally during the remainder of the
financial year. However, if interest
rates were to change significantly then the Council would revisit
interest rates available at that time.
It was then proposed by Councillor Victor
Lukaniuk, seconded by Councillor Robert Nobbs, and with the vote
being unanimous, it was:
RECOMMENDED:
That subject to the
approval of Cabinet and Council, the Treasury Management Report
(December 2022), being report number FRS/WS/23/001, be
approved.