The Cabinet considered a report of the Executive Director (Finance and Resources) on the treasury management activity for both quarter three and the period from April to December 2019.

Resolved:-

1. That the Quarter Three Treasury Management Report for 2019/20, 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 December 2019.

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 £1.654m of interest was received during this nine month period. The total investment income earned including this interest during this nine month period was £1.456m (due to the decrease in value of the property funds), at an average rate of 1.56%. This is 0.99% over the average 7 day LIBID (London Interbank Bid Rate) and 0.81% over the average bank rate.

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) increased from £267.8m to £310.3m (Housing Revenue Account (HRA): £75.0m, GF: £235.3m) during the period from April to December 2019.

6. That it be noted that the level of financing for ‘invest to save’ capital schemes decreased from £8.73m to £8.67m during the period from April to December 2019.

Reason for Decision

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 an Executive Function

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

Cabinet Member: Cllr Woodley