Agenda item

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

1.    To note the Treasury Management Prudential Indicators outturn position as set out in section 3 and Appendix 1.

2.    To agree that the report is forwarded to Audit Committee for information.

Consideration was given to the Annual Treasury Management report, which was submitted to review the treasury activity for 2021/22 against the strategy agreed at the start of the year. The report also covered the actual Prudential Indicators for 2021/22 in accordance with the requirements of the Prudential Code. The report meets 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 is required to comply with both Codes through Regulations issued under the Local Government Act 2003.

Further, the Council had received an Annual Treasury Strategy report in advance of the 2021/22 financial year at its meeting on 3rd March, 2021, and the Audit Committee received a mid year report at its meeting on 30th November, 2021, representing a mid-year review of treasury activity during 2021/22.

The Council’s treasury management functions had been operating within unprecedented times of uncertainty. The uncertainty impacted forecasts on borrowing and lending rates, availability of borrowing and investment options and capital programme projections. The uncertainty was brought about initially from the outcome of the EU exit but has been further compounded by the financial pressures and overall effect of the Covid-19 outbreak, the effects of which were expected to last for several years. More recently the impact of the conflict in Ukraine has been an additional driver of uncertainty in the financial markets, along with rising inflation and energy prices.

Resolved:-

1.    That Cabinet note the Treasury Management Prudential Indicators outturn position as set out in Section 2 and Appendix 1.

2.    That Cabinet agree that the report is forwarded to Audit Committee for information.