Issue - meetings

To report on the Council’s treasury management activities and Prudential Indicators for 2020/21.

RESOLVED that the Treasury Management performance position for 2020/21 be noted and that the Prudential and Treasury Indicators for 2020/21 be approved.

Cabinet had before it a report of the Corporate Finance & Governance Portfolio Holder (A.7) whichreported the Council’s treasury management activities and Prudential Indicators for 2020/21.

It was reported that borrowing and investments had been undertaken in accordance with the 2020/21 Annual Treasury Strategy that had been approved by the Leader of the Council on 24 April 2020 and that no external borrowing had been undertaken in 2020/21 for either the General Fund or Housing Revenue Account.

Summary of the Council’s Borrowing Position:

Summary of the Council’s Investment Position:

It was reported that the amount of interest earned from investments had decreased during the year due to the bank base rate remaining at 0.10% all year. Compared to historic interest figures, the 2020/21 return had remained low because of the continuing unprecedented low interest rates. Estimated income had been reduced during the year from the original estimate of £0.386 million to £0.290 million,with the outturn figure being £0.300 million as set out in the table above.

Cabinet was reminded that the Council continued to hold one property within its Commercial Investment Portfolio, which had a balance sheet value at 1 April 2020 of £2.155 million. This ‘book value’ had been reduced by the Council’s appointed valuers to £1.985 million at the end of 2020/21. However, this was an ‘accounting’ valuation and not a direct value that could be achieved on the market if it was sold. In-line with the budget, rental income of £0.179 million had been earned on the property in 2020/21. This figure was lower than in previous years due to the schedule of payments moving from a quarterly to monthly payment with no effect on the overall annualised position.

Members were made aware that, during 2020/21 there were no Treasury Management Practice limits that had been exceeded. The treasury performance figures for the year were set out in Appendix A to the Portfolio Holder’s report with the Prudential Indicators attached as Appendix B to that report.

Cabinet was advised that the COVID 19 pandemic would continue to have an impact in 2021/22 with no expectations of a rise in interest rates given that the economy would need to continue to recover and stabilise over the short to medium term.

Having considered the information provided in the Portfolio Holder’s report and its appendices:-

It was moved by Councillor G V Guglielmi, seconded by Councillor McWilliams and:-

RESOLVED that the Treasury Management performance position for 2020/21 be noted and that the Prudential and Treasury Indicators for 2020/21 be approved.