Decision details

Treasury Management Report 2020/21

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


The Cabinet considered a report of the Executive Director (Finance and Resources) covering the treasury activity for the period April 2020 to March 2021 and reviewed performance against the Prudential Indicators for 2020/21.




1. That the Annual Treasury Management Report for 2020/21 and the outturn Prudential Indicators for 2020/21, be approved.


2. That it be noted that the financing of 2020/21 capital expenditure of £66.085m has been funded in accordance with the schedule set out in Table 1 of section 4 of the submitted report.


3. That it be noted that 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 2020/21.


4. 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.

·        £1.606m of interest and income distributions for all investments were earned during 2020/21 at an average rate of 1.06%. This is 1.13% over the average 7 day LIBID rate (London Interbank Bid Rate) and 0.96% over the average bank base rate. Also the value of the externally managed funds decreased by a net of £0.353m due to the changes in the unit price, giving a combined return of 0.83%. (Section 7).

·        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 £310.3m (Housing Revenue Account (HRA): £75.0m, General Fund (GF): £235.3m) throughout 2020/21.

·        The level of financing for ‘invest to save’ schemes decreased from £8.64m to £8.53m by the end of 2020/21.


Reasons for decision:


The CIPFA Code of Practice on Treasury Management recommends that local authorities should submit reports regularly.  The Treasury Management Policy Statement for 2020/21 sets 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

Eligible for call-in to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Collins


Report author: Joe Chesterton

Publication date: 18/06/2021

Date of decision: 15/06/2021

Decided at meeting: 15/06/2021 - Cabinet

Effective from: 26/06/2021

Accompanying Documents:


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