Agenda item

The report was considered by the Financial Planning Task Group on 9 June 2023 and Cabinet on 14 July 2023. A report of the Financial Planning Task Group’s discussions is also attached.

The Chairman noted that in the agenda was the Annual Outturn Report, which reviewed the council’s Treasury Management activities for the year.  The report was considered by Financial Planning on 9 June, Cabinet on 13 June and Full Council on 18 July.

The following comments were made by Andy Brown, Deputy Chief Executive and Section 151 Officer, with an overview provided that when the budget was approved, authority was then delegated to the Section 151 Officer to act within the parameters of the Treasury Strategy. The Officer stated that he found comfort that this item was on the agenda to be discussed. Furthermore, the Officer stated that Wiltshire Council had a transparent approach compared to other councils, with training also being undertaken by officers to gain a clearer understanding of the detailed and prescriptive terms. Also, due to Wiltshire Council reporting on its Treasury Management Outturn position, this would allow for benchmarking against other councils to aid discussions and make improvements.

Cllr Gavin Grant, Vice-Chairman of the Financial Planning Task Group noted the strong inter-relationship between the Capital Programme and Treasury Management, with added importance due to reasons including the movement of interest rates and the cost of borrowing. Cllr Grant noted as within the earlier discussion regarding revenue accounts, if the Council is in a cash rich position, through good treasury management there is an opportunity to earn money through the shift in interest rates. Cllr Grant stated that the Task Group had no issues with the explanation of market movement, with reference also drawn to the investment in the CCLA fund, which though the numbers looked mildly alarming, once the investment matured the Council would be in a positive position. In relation to Capital outturns and HRA, the Task Group noted a need to have a better understanding. Cllr Grant also stated that the Council had an outstanding Funds Team, which Members should be grateful for and proud of.

The following comments were received by Members of the Committee but were not limited to how prescriptive the nature of reporting was and who set the prescribed requirements. it was clarified by the Officer that CIPFA (The Chartered Institute of Public Finance and Accountancy) set the standards for reporting as well as the Code for Treasury Management. Furthermore, it was outlined that every council must abide by the Treasury Management Code.

Cllr Nick Botterill, Cabinet Member for Finance, Development Control and Strategic Planning drew attention to paragraph 26 of the report, which outlined the Council’s average debt rates and average life of debt, with it noted that the average rate was 3.41% lower this year and average life of debts 18.87 years. Therefore, suggesting that the Council was not overly vulnerable to rising interest rates on its own debt.

At the conclusion of discussion, the Chairman thanked the Officer for his interest in scrutiny. After which, it was,

Resolved:

The Overview and Scrutiny Management Committee agreed:

1.     To note that the content of the report was in line with the Treasury Management Strategy 2022/23.