Issue - meetings

Cabinet Agreed

1.         That Cabinet recommends to Council acceptance of the report on Treasury Management performance in 2020/21 and the Prudential Indicators for 2020/21.

2.         On the recommendation of the Council’s S151 officer that the roles specified at 6.2 to this report be approved as authorised signatories for the Council’s bank accounts, in line with Financial Regulations.

Cllr Elliott stated that the annual outturn position for the council’s treasury activities shows their cash position and how they manage it. He stated that for security reasons, they do not put their cash with foreign organisations, but with the Bank of England. They then look at liquidity and how quickly they can get hold of their cash. He noted they get no return at the moment due to the 0.01% rate, but that it is more important to have security and liquidity in place over a high return. Cllr Elliott passed over to Nigel.

Nigel H added that in the statutory return, the performance figures have gone through the audit process, and all the credential indicators in the treasury management strategy were adhered to this year. He noted that the return on investment was reduced by 70% due to reduction in interest rates, which is something they would like to improve on this coming year.

Cllr Barratt asked how the authorised limit of £410 million was calculated.

Nigel explained they set it, and it needs to match with their capital programme, investment strategy, and whether they can finance that level of borrowing. He noted that they may increase it next year, as about 90% of their borrowing is HRA related, and their HRA programme is expanding, creating the need to borrow more money.

Cllr Elliott added that other councils have gone above that to invest in shopping centres etc, but that is not their strategy. Their strategy is housing.

Cllr Williams asked the council if they agreed recommendations 1 and 2 here.

Cabinet Agreed

1.         That Cabinet recommends to Council acceptance of the report on Treasury Management performance in 2020/21 and the Prudential Indicators for 2020/21.

2.         On the recommendation of the Council’s S151 officer that the roles specified at 6.2 to this report be approved as authorised signatories for the Council’s bank accounts, in line with Financial Regulations.