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 2022 to March 2023.

Resolved:

1. That the Annual Treasury Management Report for 2022/23 and the outturn Prudential Indicators for 2022/23, be approved.

2. That it be noted that the financing of 2022/23 capital expenditure of £51.822m has been funded in accordance with the schedule set out in 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 2022/23.

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.

• £3.773m of interest and income distributions for all investments were earned during 2022/23 at an average rate of 2.37%. This is 0.13% over the average SONIA rate (Sterling Overnight Index Average) and 0.07% over the average bank base rate. Also, the value of the externally managed funds decreased by a net of £7.335m due to the changes in the unit price, giving a combined return of -2.24%.

• 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 2022/23. 

• The level of financing for ‘invest to save’ schemes decreased from £8.39m to £8.22m by the end of 2022/23. 

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 2022/23 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

Not eligible for call-in as the matter has been the subject of pre-Cabinet scrutiny by the Policy and Resources Scrutiny Committee.

Cabinet Member: Cllr Cox