Decision details

The Cabinet Member for Finance and Housing presented a report providing information in respect of the Treasury Management Activities in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management.  The Code requires that the Council receives an annual strategy report by 31 March for the year ahead and an annual review report of the previous year by 30 September. The report provides a review of Treasury Management activities during 2018/19.

Recommendation to Council:

In accordance with CIPFA’s Code of Practice on Treasury Management, the

Cabinet agrees to note the report.  The report will be forwarded on for consideration at the next meeting of Full Council scheduled to take place on the 10^th July 2019.

Reason for the decision:

This report provides information on the Council’s debt, borrowing, and investment activity for the financial year ending on 31^st March 2019 in conformity with the CIPFA Code of Practice for Treasury Management.  The successful management of the Council’s borrowing and investments is central to the Council’s financial strategy, both in the short term and in ensuring a balanced debt profile over the next 25 to 60 years. 

The overall strategy for 2019/20 was to finance capital expenditure by running down cash/investment balances and using shorter term borrowing rather than more expensive long term loans. The taking out of longer term loans (1 to 10 years) to finance capital spending would only then be considered if required by the Council’s underlying cash flow needs.

Debt decreased slightly during the year, £202,584 million at 31^st March 2019 compared to £194,510 million at 31^st March 2018. The average borrowing rate dropped slightly from 3.96% to 3.95%. Investments at 31 March 2019 stood at £14,760 million, compared to £21,250 million the previous year, the decrease being due to the use of cash/investment balances to repay maturing debt. The average rate of return on investments was 0.66% in 2018/19 compared to 0.24% in 2017/18.