Agenda item

That the Treasury Management activities for 2017/18 and Quarter 1 of 2018/19, as set out in the body of the report, be noted.

The Service Lead Finance introduced a report that summarised treasury activity in 2017-18 and the first part of 2018-19 since the approval of the Treasury Management Strategy by Council in February 2018.

(Councillor Sadiq joined the meeting)

The total external debt of the Council had risen by £84m to a total of £366m at the end of March 2018, due to additional short term borrowing to meet cashflow obligations and fund the capital programme.  It was noted that these loans had been with other local authorities and due to the very low rates between 0.38% and 0.95% they were more cost effective than long term borrowing.  However, it was recognised that the use of significant short term borrowing was not sustainable, particularly as a further £128m borrowing for capital purposes was agreed by full Council in June 2018, and the options for future borrowing would be considered carefully in conjunction with the treasury advisors, Arlingclose.  Any adjustments to the treasury management strategy would be considered by Members in February 2019.

The Cabinet discussed a number of issues, including the fact that the increased borrowing was to fund strategic asset purchases with were expected to generate strong yields which supported the Council’s revenue position.  The Council remained one of the best performing authorities in the country in terms of treasury management performance and it was confirmed that it remained compliant with its Prudential Indicators for 2018/19.

At the conclusion of the discussion, the report was noted.

Resolved –  That the Treasury Management activities for 2017/18 and Quarter 1 of 2018/19, as set out in the body of the report, be noted.