Issue - meetings

To receive a report from the Chief Executive, Deputy Chief Executive, and Director, Finance & Procurement (S.151 Officer).

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented the half year report on the Treasury Management Strategy 2023/24, as adopted by Full Council on 21 February 2023.

It was stated the council had a healthy balance sheet, managed in accordance with accepted practices and proper oversight of processes. Details were supplied on loans provided by the Public Works Loan Board and others, the average cost of borrowing at 3.43%, and the investment portfolio yield of 4.87% against a benchmark of 4.44%. Information was also provided on investments in the CCLA property fund.

Cllr Botterill also noted there had been a breach of the council’s counterparty limit with HSBC. This had been the result of a technical error and was resolved within 24 hours at no cost to the council. An investigation had taken place to ensure all reasonable efforts that the error would not happen again.

Cllr Pip Ridout, Chairman of the Financial Planning Task Group, emphasised the importance of proper treasury management and the need to address the level of understanding of Members in order to appreciate the proper approaches that should be taken. She stated the council’s approach was prudent with no plans to borrow further at high interest rates, but the Task Group looked at the situation each month.

Councillor Gordon King noted the explanation of the counterparty limit breach and sought assurances that lessons had been learned.

Councillor Gavin Grant noted the historic actions in relation to securing loans, and that the Task Group, of which he was a member, had received a detailed account of the counterparty breach and the intended training to prevent recurrence.

The Leader stated he took reassurance that a cross party Task Group monitored these activities to provide an open and transparent assessment of council finances.

At the conclusion of discussion, it was then,

Resolved:

Cabinet noted

a)    That the contents of this report are in line with the Treasury Management Strategy 2023/24.?

b)   The performance of the Council’s investments and borrowings against the parameters set out in the approved Treasury Management Strategy for 2023/24. 

Reasons for Decision

To give members an opportunity to consider the performance of the Council in the period to 30 September 2023 against the parameters set out in the approved Treasury Management Strategy for 2023/24.