Agenda item

That the Treasury Management activities for 2013/14 and the beginning of 2014/15, as set out in the body of the report, be noted.

The Assistant Director, Finance & Audit introduced a report which summarised treasury activity in 2013-14 and the first part of 2014-15, in compliance with the CIPFA Code of Practice.

The report detailed the position in relation to the Council’s borrowings and investment activity and confirmed that none of the Prudential Indicators had been breached. Members noted that external debt had been reduced during 2013/14 and investment income of £0.542m had been achieved, with a rate of return of 0.59%.  The Treasury Management Strategy 2014/15 adopted by Council in February 2014 increased diversity in the portfolio, whilst continuing to prioritise security and liquidity over yield.  Investments in a number of longer term treasury instruments were discussed, as detailed in section 4 of the report, from which was hoped a higher rate of return could be achieved to contribute to the Council’s wider budget objectives.  The current rate of return for the 2014/15 strategy was 0.79% across an investment portfolio of £90-£100m.

Commissioners discussed the approach to debt repayment; the outlook for interest rates; and the range of strategies that local authorities were taking in relation to treasury management.  The Cabinet also welcomed the fact that it had been confirmed that the remaining balance due from its previous investment in Icelandic Banks.

Resolved –  That the Treasury Management activities for 2013-14 and the beginning of 2014-15, as set out in the body of the report, be noted.