Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

·         To note that the outturn figures in the report will remain provisional until the audit of the 2022/2023 Statement of Accounts is completed and signed off; any resulting significant adjustments to the figures in the report will be reported as appropriate;

·         To note the provisional 2022/2023 prudential and treasury indicators in the report;

·         To forward the Annual Treasury Management Review Report for 2022/2023 to the Full Council without further comment.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the Treasury Management Annual Review 2022/2023 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report saying that the Council is required by regulations issued under the Local Government Act 2003 to produce an annual treasury management review of activities and the actual prudential and treasury indicators for 2022/2023.  This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).  The report provides details of the outturn position for treasury activities and highlights compliance with the Council’s policies previously approved by Members. 

The Director of Function (Resources)/Section 151 Officer reported that the report sets out as to how the Council has performed against the Treasury Management Strategy adopted by the full Council in March 2022.  However, since the publication of the Strategy the financial climate has changed completely with the significant rise in inflation and interest rates, which has impacted on the cost of borrowing and the return on investments.  He noted that during 2022/2023, the Council maintained an under-borrowed position of £20.3m with the use of Council’s own cash balances to fund capital expenditure. This meant that the capital borrowing need was not fully funded with loan debt, as cash supporting the Council’s reserves, balances and cash flow was used as an interim measure. The level of externalised debt fell by £1.5m during the year with a debt balance of £123.8m at the end of the financial year. Conversely the balance of reserves and provisions fell by £3m to £59.8m.   All treasury management decisions taken during the year were in accordance with the Treasury Management strategy and none of the prudential indicators had been breached during the year. He further said that the MRP Policy was revised during 2022/2023 and this along with improved returns on investments had resulted in a significant reduction in revenue costs.

It was RESOLVED:-

·         To note that the outturn figures in the report will remain provisional until the audit of the 2022/2023 Statement of Accounts is completed and signed off; any resulting significant adjustments to the figures in the report will be reported as appropriate;

·         To note the provisional 2022/2023 prudential and treasury indicators in the report;

·         To forward the Annual Treasury Management Review Report for 2022/2023 to the Full Council without further comment.