Decision details

2020/21 Annual Treasury Management Report

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Purpose:

The attached report reviews treasury performance during 2020/21 against the Council’s Treasury Management Strategy. This is a historic review for noting by members.

Decisions:

Summary

 

The 2020/21 Annual Treasury Management Report was presented by the Finance and Assets Portfolio Holder. The report reviewed the treasury activities and the actual prudential and treasury indicators for the 2020/21 financial year, meeting the requirement of the Local Government Act 2003, the CIPFA Code of Practice on Treasury Management and the CIPFA Code for Capital Finance in Local Authorities.

 

The level of external debt remained at £12.8 million, which was below the Capital Financing Requirement of £21.1 million, further repayment of debt was not recommended given that the current repayment premium would be high. Attention was drawn to the fact that the Council had not funded revenue activity through borrowing, which was a prudent strategy. The borrowing strategy was constantly under review so as to avoid incurring higher borrowing costs in the future.

 

The report would be considered by the Overview and Scrutiny Committee at the meeting scheduled for Friday, 9 July 2021.

 

Discussion raised concern regarding the outcome of Local Government Reorganisation and the impact on the levels of debt currently held by the Council. The Finance and Assets Portfolio Holder informed Members that it was not as straight forward as just considering the debts of other authorities as assets can affect the balance. The Finance Lead Specialist (Section 151 Officer) agreed to provide further information on this in a written response. The Finance and Assets Portfolio Holder added that the bigger concern maybe debt at a county level and pension liabilities when considering the impact of a potential unitary authority on the Council’s current level of debt.

 

Decision

 

RESOLVED – That Council be recommended to approve the 2020/21 Annual Treasury Management Report.

 

Reasons for Decision

 

The Treasury Management Framework including Prudential Indicators forms part of the corporate governance arrangements that support all Council priorities.

 

Alternative Options Considered and Rejected

 

There are no alternative options, the report presents historic data on treasury performance during 2020/21.

Report author: Claire Read

Publication date: 25/06/2021

Date of decision: 23/06/2021

Decided at meeting: 23/06/2021 - Cabinet

Accompanying Documents: