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Issue - meetings

Treasury Management mid-year

Meeting: 19/11/2019 - Cabinet (Item 155)

155 Treasury Management Mid year

Report by Executive Director Alistair Cunningham OBE.




Supporting documents:


Cllr Simon Jacobs presented a report which advised on treasury management activities ensuring that the Council is implementing best practice in accordance with the Prudential Code for Capital Finance in Local Authorities.


Cllr Jacobs explained that the Council had not taken out any external borrowing during 2019/20, there was a projected underspend in respect of interest receivable/payable of £0.428m, and the council had not breached any of its performance indicators for the half year up to 30 September 2019.


In response to questions from Councillor Ian Thorn, Chair of the Financial Planning Task Group about (i) the £0.428m underspend in respect of interest receivable/payable, (ii) the likely impact of the interest rate increases on the Public Works Loan Board over the short and medium term; and (iii) the rescheduling of debt. Councillor Jacobs reported that (i) the figure was attributable to a reduction in the amount of borrowing originally anticipated by the council; (ii) the rise in interest rate from 1.8% to 2.8% was a not anticipated although the impact has been mitigated as the Council were working to an interest rate of 2.6%; and (iii) debt rescheduling opportunities had been limited in the current economic climate with the last rescheduling of debt undertaken in March 2019 . 


In response to a question from Cllr Sturgis about the present national situation with regards to Brexit, and whether a further report would be presented.  Cllr Jacobs reported that any further reports would be influenced by the outcome of the General Election scheduled for 12 December 2019.




1. To note:


i.  that the contents of this report are in line with the Treasury Management Strategy 2019/2020.


ii.    the performance of the Council’s investments and borrowings against the parameters set out in the approved Treasury Management Strategy for 2019/2020.



2. To recommend Full Council approve revised counter party limits of:


  • £10.000 million with HSBC in respect of fixed term investments
  • £10.000 million with HSBC in respect of balances held on an overnight basis



Reasons for Decision:


To give members an opportunity to consider the performance of the Council in the period to 30 September 2019 against the parameters set out in the approved Treasury Management Strategy for 2019/2020.


To improve the operational framework within which officers can place both overnight and external investments.






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