Decision details

Treasury Management Report - Mid Year 2019/20

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


The Cabinet considered a report of Executive Director (Finance and Resources) covering the treasury management activity and compliance with the treasury management strategy for both quarter two and the period from April to September 2019.




1.    That the Treasury Management Mid-Year Position report for 2019/20, be approved.


That the following be noted:


2.    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 2019.


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


4.    £1.067m of interest was received during this six month period. The total investment income earned including this interest during this six month period was £1.104m, at an average rate of 1.85%. This is 1.28% over the average 7 day LIBID (London Interbank Bid Rate) and 1.10% over the average bank rate. (Section 8).


5.    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) increased from £267.8m to £310.3m (Housing Revenue Account (HRA): £75.0m, General Fund: £235.3m) during the period from April to September 2019.


6.    The level of financing for ‘invest to save’ schemes decreased from £8.73m to £8.67m during the period from April to September 2019.


Reasons for Recommendations


The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2019/20 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 a Council Function

Eligible for call in to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Woodley

Report author: Joe Chesterton

Publication date: 08/11/2019

Date of decision: 05/11/2019

Decided at meeting: 05/11/2019 - Cabinet

Effective from: 16/11/2019

This decision has been called in by:

Accompanying Documents:


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