Agenda item

The purpose of this report is to review the Council’s Treasury Management activity for the first six months of 2023/24 and to provide members with an update on matters pertinent to future updates to the Council’s Treasury Management Strategy.

Members considered the Treasury Management Strategy Statement and Annual Investment Strategy Mid-Year Review report presented by Mark Saunders, Chief Accountant.

Members asked questions, made comments, and received responses as follows:

·       Councillor Booth stated that the property funds have not delivered and asked what the situation was with property funds in general, are they not performing as strongly as they have in the past as for example the uncertainty over the viability of the High Street or that office blocks are becoming a thing of the past due to flexible working? Mark Saunders responded that when it was decided which property fund to invest in there was a wide range of property funds and they all had a very different, diverse portfolio that they invest in. He stated that the two decided upon were ones which were specifically more towards the industrial sector and did not have any great focus on retail, although they do have some commercial exposure, and the returns are holding up similar to what they were when they were taken out but it is the capital value of the property fund, due to what has happened in the property market in general, which has suffered in terms of the value and it is not something the Council will be looking to get out of or sell soon until such time as capital appreciation is seen, which will hopefully be before the end of the five years.

·        Councillor Booth stated there is normally a clause with these funds about withdrawals and asked if this applied and if there was a crash in the market would the Council be stuck with it? Mark Saunders responded that nobody is permitted to take any massive withdrawals out at anyone time and the Council is committed for the long haul.

·       Councillor Booth asked about the properties being purchased for the resettlement of families from the Ukraine and Afghan and is this fully funded by the Government? Mark Saunders responded 40% of the property price is funded by the Government and the Council is funding the difference, this is detailed in the capital programme, with the costs predicted to generate a return for the Council and also help the homelessness situation by avoiding putting people into temporary accommodation and should have a positive impact on that service. He advised that each authority was given a grant for these properties which the Council took up to help with homelessness and the lack of accommodation, with the Council being under no obligation to take this up, but it was seen as a good opportunity to address the shortage of accommodation for the homeless within the Fenland area.

·       Councillor Nawaz asked if the 29 properties the Council are purchasing would be available for tenants to purchase at a discounted rate? Mark Saunders responded the housing regulations are different, so the houses are not part of the right to buy regulations. Councillor Nawaz asked if there are savings to be made elsewhere as had these properties not been available the Council legally would have been obliged to house people? Mark Saunders stated this is what the Council is expecting that it will alleviate the pressure on the homelessness budget by not using bed and breakfast accommodation. He added that there are issues around homelessness and how it impacts on housing benefit which is quite complicated.

·       Councillor Nawaz asked where the housing benefit comes from, the Government or the Council? Mark Saunders responded that housing benefit comes from the Government and it is a limited amount the Council can claim back.

·       Councillor Nawaz asked is there a fixed period the families can stay in these properties? Mark Saunders responded that they are meant to be temporary accommodation and are placed in these properties until alternative more permanent suitable accommodation can be found.

·       Councillor Nawaz asked when it comes to housing local indigenous homeless people, how do the needs of the group equate? Mark Saunders responded that in the Homelessness Reduction Act there is a process that has to be followed to identify what the Council’s liability is but rough sleepers are part of the mix that the Council has had to house over the past few years along with other homeless people. Councillor Miss French recommended Councillor Nawaz saved any further housing questions for Dan Horn as they did not relate to this item of business and would enable the correct response to be given.

Members noted the Treasury Management Strategy Statement and Annual Investment Strategy Mid-Year Review.