Issue - meetings

To consider the treasury management report for 2020/21, including the actual prudential and treasury indicators, as required under regulations issued under the Local Government Act 2003; and as required by both the CIPFA [Chartered Institute of Public Finance Accountancy] Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

Decision

(1)  That the actual prudential indicators, as set out in Appendices A and B of the report, be approved.

(2)  That the annual treasury management report for 2020/21 be approved.

Alternative Options Considered and Rejected

None. 

Reasons for Decision

During 2020/21 the Council had complied with its legislative and regulatory requirements. The key prudential indicators for 2020/21, with comparisons for 2019/20, were detailed in the report. 

The Chief Finance Officer confirmed that borrowing was only undertaken for a capital purpose and the statutory borrowing limit, the Authorised Limit had not been breached.  Additional borrowing of £3.5 million had been taken in 2020/21.  This represented an under-borrowing position of £14.327 million, which was currently being supported by internal resources. 

At 31 March 2021, the principal value of the Council’s external debt was £123.448 million (£120.153 million at 31 March 2020) and that of its investments was £33.9 million.  The interest rate achieved on investments was 0.2%, which was 0.27% above the target average seven-day LIBID [London Interbank Bid] rate.