Issue - meetings

Assembly received this report introduced by Councillor Geddes, the Cabinet Member for Finance, Revenues and Benefits.

Assembly agreed to:

(a)  Note the Treasury Management Annual Report for 2010/11;

(b)  Note that the Council complied with all 2010/11 treasury management indicators;

(c)  Approve the actual 2010/11 prudential and treasury indicators as set out in the Annual Report;

(d)  Note that the Council did not borrow in 2010/11 to finance its capital programme but utilised internal cash in line with its strategy; and

(e)  With regard to the Housing Revenue Account (HRA) reforms, agree in principle that:

  i.  In the event of favourable market conditions and the issuing of the directive from the Department of Communities and Local Government (DCLG) before 1 April 2012, the Corporate Director of Finance and Resources be permitted, after consultation with the Council’s treasury management advisers, to borrow the appropriate finance, currently estimated to be in the region of £281m;

  ii.  Finance may be raised for the HRA reform using any or a combination of the borrowing instruments referred to in paragraph 10.3 of the Cabinet Member’s report.

Cabinet received a report from the Cabinet Member for Finance, Revenues and Benefits presenting the Treasury Management Annual Report for 2010/11, which set out details of the outturn position for treasury activities and highlighted compliance with the Council’s policies previously approved by the Assembly. 

The Divisional Director of Finance advised on the key points within the Annual Report in relation to investment income and borrowing.  He also clarified the position regarding the Public Works Loans Board (PWLB) interest rates shown in the report (4.057%) and those used in the modelling of the Housing Revenue Account business plan (6%).

Cabinet recommended the Assembly to:-

  (i)  Note the Treasury Management Annual Report for 2010/11;

  (ii)  Note that the Council complied with all 2010/11 treasury management indicators;

 (iii)  Approve the actual 2010/11 prudential and treasury indicators as set out in the Annual Report;

 (iv)  Note that the Council did not borrow in 2010/11 to finance its capital programme but utilised internal cash in line with its strategy; and

  (v)  With regard to the Housing Revenue Account (HRA) reforms, agree in principle that:

(a)  In the event of favourable market conditions and the issuing of the directive from the Department of Communities and Local Government (DCLG) before 1 April 2012, the Corporate Director of Finance and Resources be permitted, after consultation with the Council’s treasury management advisers, to borrow the appropriate finance, currently estimated to be in the region of £281m;

(b)  Finance may be raised for the HRA reform using any or a combination of the borrowing instruments referred to in paragraph 10.3 of the Cabinet Member’s report.