Agenda item

Report from the Strategic Director for Finance and Customer Service.

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 report which was the final treasury report for 2022/23. It reviewed the treasury activity for 2022/23 against the strategy and covered the actual Prudential Indicators for 2022/23 in accordance with the requirements of the Prudential Code.

It explained that the Council received an annual treasury strategy report in advance of the 2022/23 financial year at its meeting on 2 March 2022 and Audit Committee received a mid-year report at its meeting on 29 November 2022, representing a mid-year review of treasury activity during 2022/23.

It was clarified that 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 as the Council was required to comply with both Codes through regulations issued under the Local Government Act 2003.

The Council’s Treasury Management functions had been operating within unprecedented circumstances with the impact of the conflict in Ukraine being an additional drive of uncertainty in the financial markets along with rising inflation, energy prices and the turmoil in the bond market. Those impact led to a significant rise in interest rates during the year.

The Council had been able to manage the cash flow for the majority of the financial year without significant difficulties. 

It was clarified that the Council had met all the requirements of the code which were about ensuring safe practice and not taking undue risks. It was also noted that in the previous year the Council had been able to utilise long-term borrowing at incredibly low rates.

Resolved: That Cabinet:

1.    Noted the Treasury Management Prudential Indicators outturn position as set out in Section 3 and Appendix 1.

2.    Agreed that the report was forwarded to Audit Committee for information.