The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Annual Treasury Management Report covering the treasury activity for the period from April 2023 to March 2024 and the performance against the Prudential Indicators for 2023/24.

Resolved:

1. That the Annual Treasury Management Report for 2023/24 and the outturn Prudential Indicators for 2023/24, be approved and it be noted that the financing of 2023/24 capital expenditure of £50.066m has been funded in accordance with the schedule set out in the submitted report.

2. That it be noted that the Capital Financing and Treasury Management were carried out in accordance with statutory requirements, good practice and in compliance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Prudential Code during 2023/24.

3. That the following in respect of the return on investment and borrowing, be noted:

·       The loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.

·       £6.319m of interest and income distributions for all investments were earned during 2023/24 at an average rate of 4.59%. This is 0.37% under the average SONIA rate (Sterling Overnight Index Average) and 0.43% under the average bank base rate. Also, the value of the externally managed funds decreased by a net of £1.651m due to the changes in the unit price, giving a combined return of 3.39%.

·       The level of borrowing from the Public Works Loan Board (PWLB) (excluding debt relating to services transferred from Essex County Council on 1st April 1998) remained at £347.3m (Housing Revenue Account (HRA): £74.2m, General Fund (GF): £273.1m) throughout 2023/24.

·       The level of financing for ‘invest to save’ schemes decreased from £8.22m to £8.03m by the end of 2023/24.

Reasons for decisions:

The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2023/24 set out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.

Other Options:

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them. The Treasury Management Policy aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note: This is an Executive Function

Not eligible for call-in

Cabinet Member: Cllr Collins