49 Treasury Management Outturn Report 2022/23
Report of the Chief Executive.
Cllr Nick Botterill, Cabinet Member for Finance, Development Management and Strategic Planning, presented a report which provided an annual treasury management review of activities and the actual prudential and treasury indicators for 2022/23.
Cllr Botterill stated that many local authority financial disasters started with problems in the operation of treasury management and there had been recent examples where that had happened. This often occurred due to a lack of questions being asked and many decision being taken without scrutiny and oversight. Within Wiltshire Council, the Financial Planning Task Group (FPTG) regularly scrutinised reports on the Council’s financial position and had reviewed this report on 9 June.
Cllr Botterill explained the report covered the period from 1 April 2022 to 31 March 2023, and that the Council has continued to finance capital expenditure through maximising the use of capital receipts, capital grants and internal borrowing. The report highlighted that overall, the Council under borrowed by £152.910m, avoiding the payment of external interest costs in the order of £3.7m.
Cllr Botterill highlighted that interest rates were having an impact but would probably start to fall within the next year. The Council was proactive in maximising returns for taxpayers. The Council had a strong balance sheet, good liquidity and under borrowing which helped the revenue situation. This in turn helped to ensure that the Council’s budget was under control.
Cllr Richard Clewer, Leader of the Council and Cabinet Member for Economic Development, Military-Civilian Integration, Heritage, Arts, Tourism, Health and Wellbeing stated that the report gave confidence and that officers were handling treasury management professionally and seriously.
Cllr Gavin Grant, Vice Chairman of the FPTG, explained that the group had considered the report at length and were satisfied with the steps being taken and were broadly satisfied with the position. A focus during their discussions was the Overall Treasury Position, and gaps between original budget estimates and the actual spend, which in some areas was a lot less. The FPTG would continue to scrutinise treasury management during the year and ensure there was a more realistic capital position. Cllr Grant stated that the FPTG had confidence in the leadership of Andy Brown, Corporate Director Resources & Deputy Chief Executive (S.151 Officer), as he and his team had transformed the position. Cllr Grant highlighted that the FPTG would benefit from training on the Housing Revenue Account.
Cllr Ian Thorn thanked the FPTG for their work.
Cllr Nick Botterill, seconded by the Leader, proposed the recommendations in the report.
a) Note that the contents of this report are in line with the Treasury Management Strategy 2022/23; and to
b) Recommend to Full Council consideration of this report.
Reason for decision:
To give members an opportunity to consider the performance of the Council against the parameters set out in the approved Treasury Management Strategy for 2022/23.