Decision Maker: Executive
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose of Report
To consider the annual Treasury Management stewardship report, which was a requirement of the Council’s reporting procedures under regulations issued under the Local Government Act 2003. The report covered the treasury management activities and the actual prudential and treasury indicators for 2021/22.
The report met the requirements of both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities.
(1) That the actual prudential indicators, as contained within Appendices A and B to the report, be approved.
(2) That the annual treasury management report for 2021/22 be approved.
Alternative Options Considered and Rejected
As detailed within the report.
Reasons for the Decision
The Chief Finance Officer had confirmed that borrowing had only been undertaken for a capital purpose and the statutory borrowing limit, the Authorised Limit, had not been breached.
At 31 March 2022, the principal value of the Council’s external debt was £135.177m (£123.448m at 31 March 2021) and that of its investments was £49.85m (£33.9m at 31 March 2021).
The increase in general fund financing costs as a % of net revenue stream in 2021/22, when compared with 2020/21, was due additional MRP charges and lower rates of return and investments. The slight increase in housing revenue account financing costs had resulted from borrowing arrangements being at rates lower than those for borrowing taken previously but also higher levels of depreciation.
The financial year 2021/22 had continued the challenging environment of previous years; the effect of the Covid-19 pandemic, low investment returns and continuing counterparty risk were the main features.
Report author: Colleen Warren
Publication date: 24/06/2022
Date of decision: 20/06/2022
Decided at meeting: 20/06/2022 - Executive
Effective from: 02/07/2022