Issue - meetings

To receive the Treasury Management Six Month Performance Review.

Executive Councillor: J Gray.

Cabinet noted the treasury management performance for the first six months of 2020/21 and has recommended the report to Council for consideration.

Consideration was given to a report by the Chief Finance Officer summarising the Council’s treasury management activity over the first half of the 2020/21 financial year which included investment and borrowing activity and treasury performance.

Following a brief introduction by the Executive Councillor for Finance and Resources, the Chief Finance Officer updated the Cabinet on the main elements of the report including the external economic context, the Council’s borrowing and investment position, non- treasury investment activity, performance against treasury management indicators and  the prospective outlook for the remainder of 2020/21.

Attention having been drawn to the comments of the Overview and Scrutiny Panel (Performance and Growth) who had endorsed the report for submission to the Cabinet, clarification was sought and provided in relation to their comments regarding the discontinuation of Council loans to other organisations.

Whereupon it was

RESOLVED

(a)  that the treasury management performance for the first six months of 2020/21 be noted; and

(b)  that the Council be recommended to consider the content of the report.

The Treasury Management Six Month Performance Review is to be presented to the Panel.

Consideration was given to a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) in which the Treasury Management Six Month Performance Review was presented to the Panel.

In introducing the report, the Executive Councillor for Finance and Resources stated that following consideration of it by Overview and Scrutiny, the report would be presented to Cabinet and then Council. The Chief Finance Officer informed Members that the Treasury Management report explained what ability the Council had to move cash around, the controls that were in place and the external factors that affected it. Members were informed that the Council’s treasury management was in a sound position.

Councillor Wakeford commented that loans to other organisations appeared to be profitable for the Council, however it was clarified that the loans were agreed a number of years ago when the interest rate was higher. In addition, the Council initially borrowed the money from another lender at a similar rate and were only making a small margin of profit in order to cover administration costs.