Decision details

Cabinet resolved to recommend the Assembly to note:

(i)  The Treasury Management Strategy Statement Mid-Year Review 2022/23;

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

(iii)  That the value of the treasury investments and cash as at 30 September 2022 totalled £109.2m and that the treasury investment strategy outperformed its peer group, with a return of 1.27% against an average of 0.95% for London Local Authorities (as at 30 June 2022);

(iv)  That the value of the commercial and residential loans lent by the Council as at 30 September 2022 totalled £168.1m at an average rate of 3.3%;

(v)  That the total borrowing position as at 30 September 2022 totalled £1,086m, with £295.9m relating to the Housing Revenue Account and £791.1m to the General Fund;

(vi)  That interest payable was forecast to be £15.8m against a budget of £15.7m;

(vii)  That interest receivable was forecast to be £7.2m against a budget of £7.5m, representing a deficit of £0.3m;

(viii)  That capitalised interest was forecast to provide a surplus of £9.0m;

(ix)  That Investment and Acquisition Strategy income was forecast to be £6.7m against a budget of £7.0m, representing a deficit of £0.3m;

(x)  That the IAS surplus, held in a reserve, was currently £29.3m and is forecast to increase to £37.6m by the end of the year, of which £11.0m is ring fenced for lease and leaseback properties;

(xi)  The post Gateway 4 cashflows, including the impact of Gascoigne East 3B and the pressures on the current pipeline schemes, as outlined in paragraph 9.2 of the report; and

(xii)  That in the first half of the financial year the Council complied with all 2022/23 treasury management indicators.