The Chief Officer – Finance, Performance and Change submitted a report, the purpose of which, is to comply with the requirement of the Chartered Institute of Public Finance and Accountancy, to provide an overview of Treasury Management activities for the last financial year and to report on the Treasury Management Indicators for 2022/23.

She advised that Treasury Management is the management of the council's cash flows, borrowing and investment, and its associated risks. The Council is exposed to financial risk and therefore, the successful identification, monitoring and control of that risk are central to the Council’s prudent financial management.

The treasury management strategy for 2022/2023 was approved by Council on the 23rd of February last year, she confirmed.

The report outlined the economic context within which the Treasury Management activity took place last year. The issues included:

•           The war in Ukraine that kept global inflation rates high;

•           The economic backdrop in January to March 2023 was characterised by high energy and commodity prices, high inflation which has impacted on household budgets and spending. The Consumer Price Index rose to 10.1% in the 12 months to March 2023;

•           Interest rates were increased on a number of occasions during the year to try to curb inflation. The bank rate started the year at 0.75% and increased 8 times during the year to 4.25%, as at 31st March 2023.

The Council’s Treasury Management activities are undertaken in line with the requirements of the Chartered Institute of Public Finance and Accountancy and our Treasury Management activities were reported to the Governance and Audit Committee, Cabinet and Council throughout 2022-2023.

A summary of the Treasury Management activities during last year were shown in Appendix A to the report, whilst Table 1 in the report, summarised the Council’s position with regards to External Debt and Investments.

In summary therefore advised the Chief Officer – Finance, Performance and Change:

•           No long term debt was taken out during the year;

•           No debt was rescheduled during the year as there was no financial benefit to the Council to do this. This would be kept under review in the current year;

•           There was a small increase in the number of Salix interest free loans   the Council has;

•           The total external borrowing that the Council is managing was £99.93m at the end of March 2023;

•           The balance of Investments at the year end was £74.5m which is reduction of £10 million as compared with March 2022;

•           The income being earned via the investments is increasing as the base rate has increased.

When investing the Council’s monies, due regard is given to ensure the security and liquidity of the investments before seeking the highest rate of return.

Finally, explained the Chief Officer – Finance, Performance and Change, the Treasury Management Code required the Council to set and report on a number of Treasury Management indicators. The indicators either summarised the expected activity or introduced limits upon that activity. Details of the estimates for  ...  view the full minutes text for item 146