Issue - meetings

Treasury Management Outturn Report

Meeting: 10/07/2019 - Cabinet (Item 12)

12 Treasury Management Outurn Report pdf icon PDF 225 KB

In February 2012 the Council adopted the 2011 edition of the CIPFA Treasury Management in the Public Services: Code of Practice, which requires the Council to approve a Treasury Management Strategy before the start of each financial year, review performance during the year, and approve an annual report after the end of each financial year.

This report gives details of performance against the Council’s Treasury Management Strategy and Annual Investment Plan for 2018/19.

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Minutes:

Councillor Richard Samuel said that this was a routine report.  The Council’s external borrowing as at 31th March 2019 totalled £226.1 million. The Council’s Capital Financing Requirement (CFR) as at 31st March 2019 was £300.7 million. The difference from actual borrowing has reflected self-investment of reserves and the savings from avoiding new borrowing was greater than interest rate achieved on investments.  The overall outturn for Interest and Capital Financing Budget was underspent of £741K towards overall outturn of the Council.  This reflected external interest savings from re-phasing of capital spend.

 

Councillor Samuel added that overall position has deteriorated since March this year, and that political uncertainty in the country could have an adverse impact on financial markets which could affect interest rates and ratings. 

 

Councillor Samuel concluded his statement by expressing his concern that Brexit discussions have completely taken over the Parliament, and that no other business has taken place, which could have severe negative impact on Local Authorities.

 

Councillor Samuel moved the recommendations.

 

Councillor Dine Romero seconded the motion.

 

Councillor Sarah Warren queried if any of the Council’s investments were with the funds invested in fossil fuel companies.

 

Councillor Samuel responded that, as far as he was aware, there were no investments in fossil fuel companies.  Nevertheless, Councillor Samuel would ask the officer to add that information in the next report. 

 

RESOLVED (unanimously) that the Cabinet agreed to:

 

2.1  The Treasury Management Report to 31st March 2019, prepared in accordance with the CIPFA Treasury Code of Practice, is noted.

2.2  The Treasury Management Indicators to 31st March 2019 are noted.

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