Decision details

Cabinet resolved to recommend the Assembly to note:

(i)  The Treasury Management Strategy Statement Mid-Year Review 2021/22;

(ii)  The economic update covering the increase in inflation and the potential for an increase in the Bank of England Base Rate;

(iii)  That the value of the treasury investments and cash as at 30 September 2021 totalled £170.2m and that the treasury investment strategy outperformed its peer group, with a return of 1.51% against an average of 0.24% for London Local Authorities (as at 30 June 2021);

(iv)  That the value of the commercial and residential loans lent by the Council as at 31 March 2021 totalled £171.5m;

(v)  That the total borrowing position as at 30 September 2021 totalled £1.0 billion, with £331.2m relating to the Housing Revenue Account and £669.1m to the General Fund;

(vi)  That interest payable was forecast to be £12.6m against a budget of £13.6m, representing a surplus of £1m;

(vii)  That interest receivable was forecast to be £8.2m against a budget of £6.5m, representing a surplus of £1.7m;

(viii)  That capitalised interest was forecast to be £6.5m against a budget of £5.0m, representing a surplus of £1.5m;

(ix)  That Investment and Acquisition Strategy income was forecast to be £4.9m against a budget of £6.6m, representing a deficit of £1.7m; and

(x)  That in the first half of the 2021/22 financial year the Council complied with all 2021/22 treasury management indicators.