Agenda item

That the Treasury Management activities for 2018/19 and the beginning of 2019/20 as set out in the report be noted.

The Service Lead Finance introduced a report that summarised treasury activity in 2018/19 and the first part of 2019/20.

The Cabinet noted that the Capital Financing Requirement as at 31^st March 2019 was £552.9m, an increase from £434.6m in the previous year.  The Council had reduced the average rate on its borrowing to 2.06% and assessed the relative risks regularly with the authority’s treasury advisors, Arlingclose.  Investment activity was reviewed and it was noted that the Council held £108m of non-treasury investments at 31^st March 2019, for example in directly owned properties and James Elliman Homes, which generated a rate of return of 5.68%.  It was confirmed that none of the Prudential Indicators had been breached.

Lead Members asked about the borrowing position and it was confirmed that the Council was seeking to move to longer term borrowing where appropriate.  Whilst the level of borrowing had increased in the past year, it was noted that this remained proportionate and affordable, and the investments were generating strong returns.  The total borrowing figure included the Housing Revenue Account self-financing settlement which gave the Council greater control of housing stock.  There would be future opportunities to reschedule these loans when permitted to achieve a more preferential rate.

Speaking under Rule 30, Councillor Strutton asked for clarification on the breakdown of the Council’s borrowing which was detailed in section 5.3 of the report.  The Leader commented that borrowing had increased in the past year, including for the purchase of the Council’s new Headquarters as had been agreed by Council in July 2018.

At the conclusion of the discussion the report was noted.

Resolved –  That the Treasury Management activities for 2018/19 and the beginning of 2019/20 as set out in the report be noted.