Agenda item

To review the Council’s Treasury Management activity for the first six months of 2022/23.

Members consider the Treasury Management Strategy Statement and Annual Investment Strategy Mid-Year Review for 2022/23 presented by Councillor Boden.

Councillor Boden stated this year, as last year, the Council has undertaken no additional borrowing so the total amount of borrowing has been reduced and it is not anticipated that the Council will borrow any money in this financial year as it currently stands.  He added that it is assumed that there will be some element in borrowing needed in the three and a half year period up to 31 March 2026 but that very much depends on some of the decisions that members make about the Council and what it does.

Councillor Boden stated that it is not surprising that the Council’s investment income has been significantly greater in the current financial year than had been anticipated in the budget, which is due to the higher inflation rates than was anticipated when the budget was set in February.  He made the point that officers work extremely hard on a day by day basis to identify the best location to place the money available to the Council and this has been undertaken extremely successfully, with their initially being a budget figure for the current financial year of £100,000 of investment income with it now being anticipated to achieve £500,000, an improvement of £400,000, with in the first six months the Council managing to achieve £164,000.

Councillor Boden stated that a lot of work was undertaken by officers to ensure that every penny earned enough money for the Council as was possible and that is a positive to be on target now towards £½ million of investment income.  He stated that when he first came onto this Council he was very surprised to see the residual debt being carried over from years ago and it became clear to him that the reason the Council had such debts outstanding was it was borrowed at such rates that it was uneconomical to buy it out or reschedule, but now the whole yield curve has shifted higher over the course of the last 6-8 months and it now means that the Council is within sight of possibly being able to reschedule one of the two remaining debts on long-term high interest rates.  He added that this will be monitored and an eye kept on how the markets change and if they change in a certain direction which makes it prudent and successful for the Council to make a change it shall do so otherwise these two old debts will continue. 

Councillor Boden advised that the overall position is that officers on a day to day basis have managed the resources of the Council as effectively as possible and the Council is in a much stronger position now in terms of the income received this year from investment than was ever thought possible in February when the budget was set.

Proposed by Councillor Boden, seconded by Councillor Connor and AGREED that the report be noted.