The Sub-Committee received Report number
FRS/WS/21/001, which reported on the investment activities of West
Suffolk Council from 1 April 2020 to 31 December 2020.
The total amount invested at 1 April 2020 was
£29,990,000 and at 31 December 2020 it was
£38,900,000.
The 2020 to 2021 Annual Treasury Management
and Investment Strategy Statements approved on 25 February 2020,
sets out the Council’s projections for the current financial
year. The budget for investment income
for 2020 to 2021 was £142,141, which was based on a 0.65%
target average rate of return on investments.
As at the end of December 2020, the interest
actually earned during the nine months of the financial year
amounted to £73,250.00 (average rate of return of 0.352%)
against a profiled budget for the period of £106,605 (average
rate of return of 0.65%); a budgetary deficit of
£33,355. The deficit related to
continued low interest rates as a result of the Covid-19 pandemic
which started in mid-March 2020.
The report also included a summary of the
borrowing and capital costs – affordability; borrowing and
income – proportionality; borrowing and asset yields;
borrowing and temporary loans and other market considerations.
The Sub-Committee
scrutinised the investment activity for 1 April 2020 to 31 December
2020, and asked questions to which responses were
provided. In particular, the
Sub-Committee discussed negative interest rates; whether the
council had start-up plans for any new tenants for
industrial/rental units; and what provision was in place for debt
collection relating to industrial and retail units.
It was then proposed by Councillor Elaine
McManus, seconded by Councillor Victor Lukaniuk, and with the vote
being unanimous it was:
RECOMMENDED:
That subject to the
approval of Cabinet and Council, the Financial Resilience Report
(December 2020), being Report number FRS/WS/21/001, be
approved.