Issue - meetings

The Cabinet Member for Social Care and Health Integration presented a report on the mid-year review of Treasury Management 2019/20.

The Cabinet Member highlighted the Council’s continued outperformance with a return of 1.61% against an average of 0.98% for London Local Authorities and 0.90% for the total comparable population of 168 authorities, recognising the Investment Fund team’s hard work in achieving this.

The Assembly noted that although the HM Treasury had announced that they would increase the interest rates offered on new Public Works Loan Board (PWLB) loans by 1.0%, this would not affect the Councils borrowing rates as borrowing for 2019/20 had been completed.

The Assembly resolved to:

(i)  Approve the revised 2019/20 Minimum Revenue Provision at Appendix 1 to the report;

(ii)  Note the Treasury Management Strategy Statement Mid-Year Review 2019/20;

(iii)  Note that in the first half of the 2019/20 financial year the Council complied with all 2019/20 treasury management indicators;

(iv)  Note the value of the treasury investments as at 30 September 2019 totalled £330.7m;

(v)  Note the value of the commercial and residential loans lent by the Council as at 31 March 2019 totalled £76.6m;

(vi)  Note the value of long term borrowing as at 30 September 2019 totalled £785.3m.  This is split with £275.9m of Housing Revenue Account (HRA) borrowing and £509.4m of General Fund borrowing. This comprised market, Public Works Loan Board (PWLB), Local Authority and European Investment Bank (EIB) loans;

(vii)  Note the value of short term borrowing as at 30 September 2019 totalled £130.0m; and

(vi)   Note the increase in the interest rates offered on new PWLB loans by 1.0% on top of existing loans terms of 0.8%, which equates to a margin of 1.8% above the relevant gilt yield.

The Cabinet Member for Finance, Performance and Core Services presented a report on the mid-year review of Treasury Management 2019/20.

The Cabinet Member highlighted in particular the 1.61% return on investments (excluding direct property investments such as those through Reside) which continued to significantly outperform the average of 0.98% for London Local Authorities and 0.90% for the total comparable population of 168 authorities, and he recognised the hard work of the Investment Fund team in achieving this.

Cabinet resolved to:

(i)  Approve the revised 2019/20 Minimum Revenue Provision at Appendix 1 to the report;

(ii)  Note the Treasury Management Strategy Statement Mid-Year Review 2019/20;

(iii)  Note that in the first half of the 2019/20 financial year the Council complied with all 2019/20 treasury management indicators;

(iv)  Note the value of the treasury investments as at 30 September 2019 totalled £330.7m;

(v)  Note the value of the commercial and residential loans lent by the Council as at 31 March 2019 totalled £76.6m;

(vi)  Note the value of long term borrowing as at 30 September 2019 totalled £785.3m. This is split with £275.9m of Housing Revenue Account borrowing and £509.4m of General Fund borrowing. This comprised market, Public Works Loan Board (PWLB), Local Authority and European Investment Bank loans;

(vii)  Note the value of short term borrowing as at 30 September 2019 totalled £130.0m; and,

(viii)  Note the increase in the interest rates offered on new PWLB loans by 1.0% on top of existing loans terms of 0.8%, which equates to a margin of 1.8% above the relevant gilt yield.