Issue - meetings

Consideration was given to the report presented by the Assistant Director Financial Services, Rob Mahon, which detailed how the Council approved the Treasury Management Strategy in March, 2022 and received a mid-year report in November 2022, representing a mid-year review of treasury activity during 2022/23.

The Annual Treasury Management report was the final treasury report for 2022/23. Its purpose was to review the treasury activity for 2022/23 against the Strategy agreed at the start of the year.

The report also covered the actual Prudential Indicators for 2022/23 in accordance with the requirements of the Prudential Code. Presentation of the report met the requirements of both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities.

The Council was required to comply with both Codes through Regulations issued under the Local Government Act 2003.

Appendix 1 of the report submitted gave a summary of the Prudential Indicators for the Council.

Discussion ensued on the report with the following issues raised/clarified:-

-         The Bank of England increased interest rates to control inflation.  This had resulted in a significant increase in investment returns during 2022/23 and the Council’s short term borrowing costs significantly reduced as it had not needed to borrow or borrow in the high interest rate market.  However, it did make it challenging to forecast and would be kept under close observation

-         The Council had invested with Central Government in the last financial year as it had cash balance available.  However, it did not provide a good return and was the last port of call for investment and would expect to invest in other markets first

Resolved:-   That the Financial Outturn 2022/23 – Treasury Management and Prudential Indicators - be noted.