Issue - meetings

To receive an update on the Council’s treasury management activity for the first 6 months of the year, including investment and borrowing activity and treasury performance.

Executive Councillor: B Mickelburgh.

The Cabinet has noted the treasury management performance for the first 6 months of 2022/23 and recommended the report to Council for consideration.

With the aid of a report by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book) the Cabinet were updated on the Council’s treasury management activity for the first 6 months of the year, including investment and borrowing activity and treasury performance.

The Financial and Treasury Accountant introduced the report which set out treasury performance between the period 1st April 2022 and 30th September 2022 outlining the position with regards to investments and borrowing. Whilst there had been some increases in interest rates, it was reported that the Council had not used any short term loan facilities so far this financial year and had also paid off an outstanding loan with the Public Works Loan Board (PWLB) which was welcoming news.

Following a brief discussion on the rates given on maturity loans and whether the Council had been subjected to early repayment charges as a result of paying off the PWLB loan sooner, the Cabinet

RESOLVED

to note the treasury management performance for the first 6 months of 2022/23 and recommended the report to Council for consideration.

The Panel is to receive the Treasury Management 6 Month Performance Review Report.

By means of a report by the Director of Finance and Resources (a copy of which was appended in the Minute Book), the Treasury Management 6 Month Performance Review was presented to the Panel.

Following a question from Councillor Harvey on lost income due to the early repayment of the Luminus loan, the Panel heard that anticipated income from interest payments on the loan had been reduced, however the early repayment option had been a clause in the original loan. It was further advised that some financial benefit had been received by repaying the loan to PWLB early and this would be shown in the next update of the report.

Councillor Gray questioned the figures shown in Table 6, specifically what the amount £2.8 million related to as it was thought to be too low for the whole portfolio. The detailed response to this will be sought by the Officer and reported back to the Panel.  

Following the discussion, the Panel

RESOLVED

that the Cabinet be encouraged to endorse the recommendations within the report.