Issue - meetings

Report of the Chief Executive (enclosed)

The Committee received a report of the Chief Executive on Treasury Management and performance and compliance with Prudential Indicators in the financial year 2016/17 to the end of December.

Average interest earned was 0.03% to the end of December. As in 2015/16, cash balances had been used as a source of internal borrowing at higher rates of interest, thereby achieving revenue budget savings. Updated Capital Expenditure and Capital Financing Requirement Prudential Indicators would be presented in the Treasury Strategy report to Full Council on 28 February 2017 and would come to the next Governance Committee meeting in March.

The Council’s treasury advisors, Capita Asset Services, had provided a detailed commentary on interest rate forecasts which was appended to the report. Compared to the previous interest rates forecast, PWLB rates were currently lower than had been expected and were not considered likely to increase by much as had been previously suggested. It was anticipated that there would be the potential to borrow money more cheaply from other authorities rather than PWLB in the future. Any future projects that the Council may embark upon, would take into account the cost of borrowing for the organisation and associated risks.

RESOLVED – That the report be noted.