The Chief Officer – Finance, Performance and Change presented a report

on the projected Treasury Management Indicators for 2022-23. She provided the background to the report and gave an update on the current position as detailed in the report. She added that the TM Code required the Council to set and report on a number of Treasury Management Indicators. Details of the estimates for 2022-23 were set out in the Council’s TMS, against current projections, shown in Appendix A and these showed that the Council was operating in line with the approved limits.

The Chief Officer – Finance, Performance and Change provided some extra detail regarding the 2 investments with Thurrock Council for £8 million in response to the concerns that had been raised from a number of places about whether or not, they should be investing with them on the basis that they were having some problems at the current time. She reassured Cabinet that both of the investments that had been made had been done so in accordance with the Treasury Management Strategy and also in accordance with the lending lists which the Treasury Manager and external advisors recommended that they used. Advice was received about lending to Thurrock Council on both of those investments and the investments were made prior to any changes in the advice coming out with regards to that Council. They had invested with that Council for a number of years and repayments had always been made on time and in line with the agreements that they had in place. She added that Essex County Council had now been appointed in the role of Commissioner and Best Value Inspector at Thurrock, which meant they were now managing their financial affairs and they had confirmed that Thurrock would be repaying all of the investments that were placed with them and if necessary they would borrow through the Public Works Loan Board to replace them. Assurances had been given that both of the investments were secure and they would get that money back. The second issue was that it was quite difficult at the moment to forecast what the impact on the Council would be of the latest mini budget and the impact it was having on markets. Treasury management work was very influenced by what was happening on national and global markets so they would monitor that and there were increases in the interest rates being offered for investments so money would be working that little bit harder for the authority. She added that should rates rise more than they had anticipated, then they would review the loans that they had and take external advice and report to Cabinet prior to making that final decision.

The Cabinet Member for Resources thanked the Chief Officer – Finance, Performance and Change for the explanation of how the treasury management process operated. It was a critical element of any local authority’s financial process, and they did have independent expert financial advice. They often received Welsh Government funding ahead of the need to draw it down and they made best use of that funding.

The Chief Executive explained that it was very important in terms of being as transparent and open as possible, that the Thurrock example had been mentioned. All local authorities invested their money sometimes for short periods knowing that they would need it in due course, but for a short period it made sense to invest it elsewhere, providing a return. It was not there as money that could be spent as it was already committed elsewhere as earmarked reserves.

The Leader stressed that they also used the credit rating agencies, Standard and Poor's, Moody's and Fitch and they were internationally recognised and very much part of the assessment of where they deposited funds.

RESOLVED:       Cabinet noted the Council’s treasury management activities for 2022-23 for the period 1 April 2022 to 30 June 2022 and the projected Treasury Management Indicators for 2022-23.