Issue - meetings

To receive and consider the report of the Director of Finance.

Louise Mattinson, Director of Finance presented the report which outlines Treasury Management performance and compliance with Prudential Indicators for the period ended 30th September 2022 and presents monitoring figures for the quarter ended 30th September 2022, including updated interest rate forecasts from Link Asset Services.

At its meeting on 22 February 2022, Council approved the Treasury Management Policy Statement; Prudential Indicators; Investment Strategy; and the Annual Minimum Revenue Provision (MRP) Policy for 2022/23. The Treasury Management Annual Report for 2021/22 was presented to Governance Committee on 3rd August 2022. The Code of Practice for Treasury Management requires all Councils to review their treasury strategies and activities half yearly. This report satisfies that requirement.

Members noted that the latest forecasts show PWLB borrowing rates peaking December 2022 - March 2023 then gradually reducing, however the volatility of world and domestic markets must be stressed. Based on these projections, Members recognised that it was worth waiting to borrow rather than borrowing now. The council were monitoring and managing the cash balances to ensure they are maximised before seeking to borrow.

Members noted that the Council has;

·         remained within its Prudential Indicators;

·         adhered to its approved Counterparty Limits;

·         not entered into any further borrowing; however further borrowing is likely to fund the approved Capital Programme;

·         retained its “under borrowed” position;

·         has achieved an increased investment yield of 0.82%

Resolved - That the report be noted.