Issue - meetings

The Cabinet Member for Finance, Performance and Core Services introduced the Treasury Management Annual Report for 2018/19 setting out the key areas of performance during the year as well as presenting the Strategy for 2019/20. 

He explained the context for presenting the report to the Assembly for approval, this being the third of three treasury management reports presented over the course of the year. This document detailed the progress made and outcomes achieved against the Strategy proposed at the beginning of the financial year. The report represented the check and balances to ensure the Council worked within the defined parameters set by Government and the requirements of the Chartered Institute of Public Finance & Accountancy (CIPFA). 

The Cabinet Member was pleased to report that investment income for the year was £8.9m compared to the budget of £4.3m, while the Council’s average interest return of 1.50% was 0.57% higher than the average London Peer Group return and 0.58% higher than the Local Authority average return. The Council had borrowed an additional £140m of long-term funding via the General Fund during 2018/19, bringing the total long-term General Fund borrowing to £475.7m.  He confirmed that borrowing would continue to rise in the years ahead as the Council progressed its Investment and Acquisition Strategy, with returns being used to support the provision of improved services to the local community.

In respect to the report and presentation members raised a number of questions and received responses from the Cabinet Member in relation to the split of interest payable between the General Fund and the HRA, as well as the total interest payable as of 29 March 2019, details of the investment strategy underpinning the additional £140m of borrowing including explanations about a number of short term loans, as well as future borrowing plans. 

It was noted that the report was presented to the Cabinet on 18 June 2019 who supported the recommendations contained therein.

The Assembly resolved to:

(i)  Note the Treasury Management Annual Report for 2018/19;

(ii)  Note that the Council complied with all 2018/19 treasury management indicators;

(iii)  Approve the actual Prudential and Treasury Indicators for 2018/19; and

(iv)  Note that the Council borrowed £140m from the Public Works Loan Board (PWLB) in 2018/19.

The Cabinet Member for Finance, Performance and Core Services introduced the Treasury Management Annual Report for 2018/19 which set out the key areas of performance during the year. 

The Cabinet Member was pleased to report that investment income for the year was £8.9m compared to the budget of £4.3m, while the Council’s average interest return of 1.50% was 0.57% higher than the average London Peer Group return and 0.58% higher than the Local Authority average return.  The Council had borrowed an additional £140m of long-term funding via the General Fund during 2018/19, bringing the total long-term General Fund borrowing to £475.7m.  The Cabinet Member confirmed that borrowing would continue to rise in the years ahead as the Council progressed its Investment and Acquisition Strategy, with returns being used to support the provision of improved services to the local community.

Cabinet resolved to:

(i)  Note the Treasury Management Annual Report for 2018/19;

(ii)  Note that the Council complied with all 2018/19 treasury management indicators;

(iii)  Approve the actual Prudential and Treasury Indicators for 2018/19; and

(iv)  Note that the Council borrowed £140.0m from the Public Works Loan Board in 2018/19.