The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the mid-year Treasury Management Report covering the treasury management activity for the period from April to September 2023 and compliance with the treasury management strategy for that period.

Resolved:

1. That the Treasury Management Mid-Year Position report for 2023/24, be approved.

2. That it be noted that the Treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to September 2023.

3. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.

4. That it be noted that £3.130m of interest and income distributions for all investments were earned during this six-month period at an average rate of 4.41%. This is 0.32% lower than the average SONIA rate (Sterling Overnight Index Average) and 0.39% lower than the average bank rate. Also, the value of the externally managed funds decreased by a net of £0.561m due to changes in the unit price, giving a combined overall return of 3.62%.

5. That it be noted that 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: £273.1m) during the period from April to September 2023 at an average rate of 3.46%.

6. That it be noted that the level of financing for ‘invest to save’ schemes decreased from £8.22m to £8.13m during the period from April to September 2023.

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 as the matter has been the subject of pre-Cabinet scrutiny by the Policy and Resources Scrutiny Committee.

Cabinet Member: Cllr Cox