Issue - meetings

The Cabinet Member for Finance, Performance and Core Services presented a report on the Treasury Management 2020/21 Mid-Year Review.

The mid-year review report provided details of the mid-year position for treasury activities and highlighted compliance with the Council’s policies previously approved by the Assembly on 17 February 2020 as part of the Treasury Management Strategy Statement for 2020/21.

The Cabinet Member advised that through the hard work of Members and Officers, the Council was in a robust and resilient position moving forward.  The Council was in a position that, despite the recent hardships and associated financial pressures from the COVID 19 pandemic, will still be delivering a strong budget return.

The Assembly resolved to note:

(i) The Treasury Management Strategy Statement Mid-Year Review 2020/21;

(ii) That the value of the treasury investments as at 30 September 2020 totalled £241.1m;

(iii) That the treasury investment strategy outperformed its peer group, with a return of 1.50% against an average of 0.48% for London Local Authorities and 0.34% for the total comparable population of 211 Local Authorities;

(iv) That the value of the commercial and residential loans lent by the Council as at 31 March 2020 totalled £171.0m;

(v) That the value of long term borrowing as at 30 September 2020 totalled £945.8m, of which £275.9m related to the Housing Revenue Account and £669.9m to the General Fund;

(vi) That the value of short term borrowing as at 30 September 2020 totalled £99.5m;

(vii) That interest would be capitalised on long term developments of over £10m, effective from 1 April 2019; and

(viii) That in the first half of the 2020/21 financial year, the Council complied with all 2020/21 treasury management indicators.

Further to Minute 104 (17 February 2020), the Cabinet Member for Finance, Performance and Core Services introduced a report on the mid-year review of the Council’s treasury management activities for 2020/21 and, in summarising the content of the report, he highlighted compliance with the Council’s policies and statutory requirements.

Cabinet therefore resolved to recommend the Assembly to note:

(i)  The Treasury Management Strategy Statement Mid-Year Review 2020/21;

(ii)  That the value of the treasury investments as at 30 September 2020 totalled £241.1m;

(iii)  That the treasury investment strategy outperformed its peer group, with a return of 1.50% against an average of 0.48% for London Local Authorities and 0.34% for the total comparable population of 211 Local Authorities;

(iv)  That the value of the commercial and residential loans lent by the Council as at 31 March 2020 totalled £171.0m;

(v)  That the value of long term borrowing as at 30 September 2020 totalled £945.8m, of which £275.9m related to the Housing Revenue Account and £669.9m to the General Fund;

(vi)  That the value of short term borrowing as at 30 September 2020 totalled £99.5m;

(vii)  That interest would be capitalised on long term developments of over £10m, effective from 1 April 2019; and

(viii)  That in the first half of the 2020/21 financial year, the Council complied with all 2020/21 treasury management indicators.