Agenda item

The Director of Finance advised on the performance of the Treasury Management function of the Council for the first half of 2020/21 and provided a comparison of performance against the 2020/21 Treasury Management Strategy and Prudential Indicators.

It was noted that the Council is required to consider the performance of the Treasury Management function in order to comply with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (revised 2017) and the submitted report set out the following key Treasury Management issues for Members’ consideration –

•      an economic update for the first six months of 2020/21;

•      a review of the Treasury Management Strategy Statement and the Annual Investment Strategy;

•      the Council’s capital expenditure, as set out in the Capital Strategy, and prudential indicators;

•      a review of the Council’s investment portfolio for 2020/21;

•      a review of the Council’s borrowing strategy for 2020/21;

•      why there had been no debt rescheduling undertaken during 2020/21; and

•      a review of compliance with Treasury and Prudential Limits for 2020/21.

The report was presented to the Audit Committee to give opportunity to review the report prior to its presentation to Cabinet and Council.  In this regard, particular attention was drawn to the Treasury Management Strategy Statement and Annual Investment Strategy Update wherein it was noted the Treasury Management Strategy Statement approved in February 2020 now required revision in light of economic and operational movements which were considered at paragraph 2.4 to the submitted report.

In response to a query as to any opportunity to audit or to assess the deal, it was reported that the purchase by the Council of the Spindles Shopping Centre had been funded through funds set aside in the Capital Programme as presented in a report on the ‘Creating a Better Place’ initiative approved by Cabinet in August.  The Committee was advised that the External Auditor made assessments of value for money, though not normally focused on one specific activity, and that an assessment of the benefits and risks of the purchase had been made by Officers having regard to analysis provided by the Council’s external advisors where appropriate.  The Committee was advised that the purchase was a key element of the regeneration programme and vison for the Borough and was part of a plan of activity that would take several years to deliver in full. 

It was suggested by some members of the Committee that, in light of public comment, the position needed explanation.  The Committee was asked to note that some aspects of this matter would be subject to commercial sensitivities, but consideration could be given as to what papers might be available for review if required. 

RESOLVED that the Treasury Management Mid-Year Review Report be commended to the Cabinet, noting 

(i)            the Treasury Management activity for the first half of the financial year 2020/21 and the projected outturn position;

(ii)          the amendments to both Authorised Limit and Operational Boundary for external debt as set out in the table at paragraph 2.4.5 of the report; and

(iii)         the amendments to the Capital Financing Requirement as set out in the table at paragraph 2.4.5 of the report.