Decision details

2019/20 Annual Treasury Management Report

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes




The Treasury Management Annual Report 2019/20 was presented by the Finance and Resources Portfolio Holder.  The report reviewed the treasury activities and the actual prudential and treasury indicators for the 2019/20 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 had remained at £12.8m, below the Capital Financing Requirement of £18.5m.  This showed that the Council had not funded revenue activity through borrowing, a key prudential indicator.  This had been a prudent strategy which was constantly under review so as to avoid incurring higher borrowing costs in the future when the Council might not be able to avoid new borrowing.  Interest Receipts from the Council’s Investments had brought in £61,000 more income than budgeted for, as the Council benefited from fluctuations in market rates as a result of changing market expectations on the next move by the Monetary Policy Committee regarding the Bank of England base rate and a stepped maturity profile for deposits.  Interest payable on borrowing had been in line with budget as no new borrowing had been expected or taken in 2019/20 as a result of using internal cash balances to fund capital rather than borrowing.  Looking forward, the COVID-19 outbreak had introduced a large amount of uncertainty into the market.  Officers would keep this under constant review with support from the Council’s external treasury advisors, Link Asset Services.  The current strategy of using internal cash balances to fund prudential borrowing continued to minimise the interest rate gap (where loans cost more than investments earn) and to help reduce counterparty risk.


The report had been considered by the Overview and Scrutiny Committee at its meeting on 22 June 2020.


The Finance and Resources Portfolio Holder thanked officers for their work in this area, pointing out that their careful management of the Council’s borrowing and cash balances was critical to minimise the risk that it faced, while achieving the best possible returns to support the broader work of the Council.


The Economy, Culture and Leisure Portfolio Holder complimented officers and the Finance Portfolio Holder for a detailed report in this time of crisis.


A vote was taken on the proposals during which all Cabinet Members confirmed that they had, without interruption, heard the full presentation and discussion on the item.



RESOLVED – That Council be recommended to approve the 2019/20 Treasury Management Annual 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 2019/20.

Publication date: 26/06/2020

Date of decision: 24/06/2020

Decided at meeting: 24/06/2020 - Cabinet

Effective from: 06/07/2020

Current call-in Count: 0

Accompanying Documents: