Issue - meetings

Treasury Management Activity Mid-Year Review 2021/22

Meeting: 24/11/2021 - Governance Committee (Item 46)

46 Treasury Management Activity Mid-Year Review 2021/22 pdf icon PDF 456 KB

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


Tony Furber, Principal Financial Accountant presented the Treasury Management Activity Mid-Year Review 2021/22.


There was little said to be noteworthy from the first half of the year. The cash balance at the start of September was short of £10 million which was higher than usual for Chorley, levels were usually between 5 and 6 million pounds, but it reflected the continuation of unusual circumstances.


Average earnings for the half year was 0.06%, which against the background of the circumstances was a credible result.


Link Asset Services abandoned their usual recommended target earning rate and settled on a flat standard of 0.1%. The Council’s portfolio was small and the 0.1% was based on the assumption of term deposits averaging three months. The nature of the Council’s cashflow does not correspond and in the context 0.06% was rather good.


Interest rates appeared to be heading towards a more recognisable normal with expectation that the bank rate will rise before Christmas, with a steady rise to 1.25% in the coming years.


No external borrowing occurred in the first half of the year, but likely in the second half.


Decision: The report was noted