Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Investment Strategy (Capital and Treasury) End of Year Review.

RESOLVED:

(1)   That Council approved the actual 2023/24 prudential and treasury indicators.

(2)   That Council noted the annual Treasury Report for 2023/24.

(3)   That Council approved a change to the Investment Strategy allowing investments to be placed on Lloyds Call Account so the combined total of Current Account and Call Account is up to £5M.

REASONS FOR DECISIONS:

(1)   Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2)   To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio recording – 1 hour 25 minutes 48 seconds

N.B Councillor Paul Ward declared an interest due to his employment and left the Chamber and did not take place in the debate or vote.

N.B Councillor Alistair Willoughby left the Chamber at 21:00 and returned at 21:01, Councillor Emma Fernandes left the Chamber at 21:00 and returned at 21:02.

The Leader of the Council, Councillor Daniel Allen presented referral 8B from Cabinet and stated that:

·       There had been a reduction in the capital spend of £4.12M with the majority, £2.85M, being moved to the 2024/25 capital spend programme.

·       £1.5M of the Local Authority Housing fund had not been required.

·       The Council generated £2.94M of investment interest throughout the year, which was significantly more than budgeted.

·       Repayment of £200K on borrowing had been made, with an outstanding balance of £347K, it was noted that there was a premium for repaying this loan early.

Councillor Ian Albert, Executive Member for Finance and IT presented the report ‘Investment Strategy (Capital and Treasury) End of Year Review 2023/24’ and stated that:

·       Council was asked to approve the annual report and the changes to the investment strategy with regards to the Lloyds Call Account.

·       The changes to the capital spend were highlighted in table 2 and 3 of the report.

·       The completed capital schemes were detailed in paragraph 8.6 of the report.

·       Table 4 of the report detailed the funding for the Capital Programme.

·       A full review of the capital spend, and the matching priorities, would be carried out prior to the setting of the 2025 -26 budget.

·       The Council generated £2.941M of interest this year, which was £1.6M more than forecasted, all investments were made in line with the investment strategy.

·       There was an outstanding amount of £347K for borrowing, however this was on a fixed rate for a fixed period of time and a premium would be incurred if repaid early.

·       There was an investment strategy change regarding the Lloyds Call Account and this was detailed in paragraph 8.19 of report.

Councillor Ian Albert proposed and Councillor Daniel Allen seconded and, following a vote, it was:

RESOLVED:

(1)   That Council approved the actual 2023/24 prudential and treasury indicators.

(2)   That Council noted the annual Treasury Report for 2023/24.

(3)   That Council approved a change to the Investment Strategy allowing investments to be placed on Lloyds Call Account so the combined total of Current Account and Call Account is up to £5M.

REASONS FOR DECISIONS:

(1)   Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2)   To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.