Issue - meetings

Report of the Chief Executive

Cllr Botterill, Cabinet Member for Finance, Development Management and Strategic Planning presented the report which provided information about the performance of the Council up to 30 September 2022 against the parameters set out in the approved Treasury Management Strategy for 2022/23.

The Cabinet noted the following:

·       The Council has not taken out any new PWLB borrowing during 2022/23

·       Projected underspend in respect of interest receivable/payable of £1.265m, against budget

·       No breaches of any of the Council’s performance indicators for the period

·       The Council has breached the counterparty monetary limit for an investment held with Handelsbanken (35 day notice account).

Cllr Ian Thorn commented on the current level of borrowing compared to the maximum amount of borrowing allowed. In response, officers raised no concerns about the level of borrowing, approved by Full Council in February 2022.  

Cllr Graham Wright, Chairman of the Overview and Scrutiny Management Committee and Cllr Pip Ridout, Chair of the Financial Planning Task Group reported that the Management Committee and Task Group met on the 25 November to consider the report. It was acknowledged that managing the council’s investments and borrowing is now more challenging, and the assumptions behind not borrowing further in this financial year and the risks involved in borrowing to lend to Stone Circle were understood. They did not raise any significant concerns.

Cllr Gavin Grant commented on the Council borrowing £80m in March 2022 and asked for the detail of interest rates at that time in comparison to current rates and the impact on the Council. In response, officers explained that there were 4 amounts of £20m borrowed at interest rates of 1.95%, 1.98%, and 2 at 2%. This is in comparison to the prevailing rate of 3.5%. It was noted that the Council was now investing surplus cash at a more favourable rate.

Cllr Dr Brian Mathew and Cllr Clare Cape commented on their concerns in relation to the Council investing £10m in Qatar. The Leader and Cllr Botterill explained that investment decisions had a level of risk and decisions are taken about investments within those clear risk defined boundaries which are annually approved by Full Council under the Treasury Management Strategy.

Resolved:

a)    that the contents of this report are in line with the Treasury Management Strategy 2022/23.

b)    the performance of the Council’s investments and borrowings against the parameters set out in the approved Treasury Management Strategy for 2022/23.

Reason for Decision:

To give members an opportunity to consider the performance of the Council in the period to 30 September 2022 against the parameters set out in the approved Treasury Management Strategy for 2022/23.