Issue - meetings

(a)       That the draft Treasury Management Annual Report 2019/20 be noted, with no matters to be drawn to the attention of Cabinet in September; and

(b)       That the Treasury Management 2020/21 first quarter update be noted.

The Interim Finance Manager (Technical Accountancy) presented the draft Treasury Management Annual Report 2019/20 for review and recommendation to Cabinet.  The Quarter 1 update on matters relating to the Treasury Management Policy, Strategy and Practices 2020/21 was also shared for information, along with the reporting cycle.

In preparation for approving the Treasury Management Strategy 2020/21, all Members would be invited to the annual training session in December facilitated by the Treasury Management Advisors.  Details of how the training would be delivered would be shared at a later stage.  Key areas of the Annual Report 2019/20 were summarised, such as the continued low level interest rates and yield on investments.  Borrowing activity included the allocation of loans to NEW Homes to fund the Council house building programme.

On the Quarter 1 update for 2020/21, despite the challenges from the emergency situation, treasury management was in a relatively strong position due to the work undertaken by the Finance team.  Whilst the investment strategy with the Debt Management Office (DMO) reflected priority given to security of funds, the Council had recently started to invest again with Money Market Funds which offered a better yield.

Allan Rainford was pleased to note there had been no breaches against the Council’s strategy.  In response to questions on interest rates, the Interim Finance Manager advised that an increase in short-term rates was not expected soon.  On borrowing, regular monitoring took place to assess long and short-term borrowing with a monthly review to discuss requirements.

On short-term borrowing, Councillor Johnson commented on the difference in brokerage fees from local authorities since the previous year.  The Interim Finance Manager would look into this and provide a separate response.

The recommendations were moved by Allan Rainford and seconded by Councillor Johnson.

RESOLVED:

(a)       That the draft Treasury Management Annual Report 2019/20 be noted, with no matters to be drawn to the attention of Cabinet in September; and

(b)       That the Treasury Management 2020/21 first quarter update be noted.