Issue - meetings

Treasury Management Annual Report 2019/20

Meeting: 16/06/2020 - Cabinet (Item 12)

12 Treasury Management Annual Report 2019/20 pdf icon PDF 1003 KB

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The Cabinet Member for Finance, Performance and Core Services introduced the Treasury Management Annual Report for 2019/20 which set out the key areas of performance during the year. 


The Cabinet Member referred to the major factors during the past 12 months that had effected the UK economy, those being the uncertainty over Brexit and the COVID-19 pandemic, and the significant cut in what were already very low interest rates by the Bank of England as a means of stimulating the economy.  Against that backdrop, the Cabinet Member praised the success of the Council’s treasury management activities during 2019/20 which he attributed to the Council’s vigorous assessment of investment opportunities, prudent approach to borrowing and the excellent work of the Treasury Management team.  He acknowledged, however, that the COVID-19 pandemic would impact on the Council’s treasury management plans going forward, particularly in the short-term.


Key highlights within the report included income from interest of £8.8m compared to a budget projection of £6.6m; an average treasury interest return of 1.35% which was 0.51% higher than the average London Peer Group return and 0.53% higher than the Local Authority average return; an average return on loans of 3.57%; and additional borrowing of £140m to support the Council’s Investment and Acquisition Strategy.  In respect of the latter, the Cabinet Member alluded to the need for many local authorities to seek out additional sources of income due to Government cuts to public sector finances.


Cabinet resolved to recommend the Assembly to:


(i)  Note the Treasury Management Annual Report for 2019/20;


(ii)  Note that the Council complied with all 2019/20 treasury management indicators;


(iii)  Approve the actual Prudential and Treasury Indicators for 2019/20, as set out in Appendix 1 to the report; and


(iv)  Note that the Council borrowed £140.0m from the Public Works Loan Board (PWLB) in 2019/20.