Issue - meetings

That the Committee notes the draft Treasury Management Mid-Year Report 2022/23 and confirms the following matters to be drawn to the attention of Cabinet at its meeting in December 2022:

·         To note compliance with the Council’s approved prudential indicators;

·         Key considerations informing borrowing decisions; and

·         Stability of PWLB rates which had been subject to fluctuations.

The Strategic Finance Manager presented the draft Treasury Management mid-year report for 2022/23 for recommendation to Cabinet, together with an update on Quarter 2 activities for information.

A summary of the key points referred to the impact of global events, changes in the UK government and an update on interest rates.  It was confirmed that the treasury management function had operated fully within the limits set out in the strategy for 2022/23.  The quarterly update detailed the position on investments and borrowing as at 30 September 2022, with a reminder of the forthcoming annual training session.

Allan Rainford commented that compliance with approved prudential indicators provided some assurance for Cabinet during the period.  In response to questions, the Strategic Finance Manager said that the Council’s overall under-borrowing position remained unchanged and that decisions were based on requirements, available resources and spreading risk.  He provided clarification on investment counterparties and the recent stabilising of Public Works Loans Board (PWLB) rates following a period of volatility.

In response to a question on the importance of robust monitoring arrangements for cashflow forecasting whilst working remotely, the Corporate Finance Manager gave assurance of regular liaison across departments to help plan any future borrowing requirements.  He reported an emerging significant underspend in-year due to no borrowing undertaken at this stage of the financial year and additional investment income from rising interest rates.

As requested by Councillor Andrew Parkhurst, details of credit agency ratings for each of the investment counterparties would be shared with the Committee.

The recommendation, which was amended to reflect the debate, was moved and seconded by Allan Rainford and Rev Brian Harvey.

RESOLVED:

That the Committee notes the draft Treasury Management Mid-Year Report 2022/23 and confirms the following matters to be drawn to the attention of Cabinet at its meeting in December 2022:

·         To note compliance with the Council’s approved prudential indicators;

·         Key considerations informing borrowing decisions; and

·         Stability of PWLB rates which had been subject to fluctuations.