Issue - meetings

Councillor David Saunders propose, Councillor Ashbee seconded and Members approved the report and annexes, including the prudential and treasury indicators that were shown in the report and the proposed changes to the 2022-23 Treasury Management Strategy Statement.

Cabinet considered the treasury management report. At the mid-year point the council had approximately £20million of external borrowing, but no new external borrowing had been undertaken during the first half of this year. About £169k of debt had been paid during the same period under review. Borrowing options would continue to be reviewed in the second half of this financial year in line with the current and emerging market conditions.

The financing and the affordability of the capital programme was being kept under regular review due to the effects of inflation and a shortage of capital receipts. The council’s borrowing strategy would also be regularly reviewed and revised in order to achieve optimum value and manage risk of exposure in the long term. The council still had a significant cash and investment balance, holding about £57 million, as at 30 September 2022.

Members further considered minor technical changes that were proposed for the treasury management strategy. This was in order to reflect a change of accounting estimates following a further deferral in the implementation of accounting standards for leases. Members were assured that making this change would ensure that the council’s limits would be adjusted to an appropriate level. The other proposal was to increase the length of time permitted to invest with the UK Government from six months to two years, in order to increase the council’s investment options.

Cabinet received a report for a minor breach to the investment limits for one of the council’s deposits. This was due to an error by one of the council’s financial providers, where they added the accrued interest to the balance of the deposit with the fund, rather than paying the interest directly to the council. This resulted in £6million limit being exceeded by £4, 385 for the period from 1 June 2022 to 8 June 2022 and by £5,335 for the period from 1 July 2022 to 4 July 2022.

Councillor Saunders proposed, Councillor Pugh seconded and Cabinet agreed the following:

1.  To note, and make comments on as appropriate, this report and annexes;

2.  To recommend this report and annexes, including the prudential and treasury indicators that are shown and the proposed changes to the 2022-23 Treasury Management Strategy Statement, to council for approval.