25 Treasury Management Annual Report 2023-2024 PDF 121 KB
Report of Councillor Daniel Butcher on behalf of Cabinet meeting on 17 July 2024 (also referred from Audit and Governance Committee on 18 July 2024).
Additional documents:
Minutes:
Councillor Butcher move and Councillor Holt seconded the recommendation referred from the meeting of Cabinet held on 19 July 2023, in support of the approval of the Annual Treasury Management Report 2023/24. The referral document from Cabinet and the report to Cabinet were considered.
The report and the wider issues related to it were debated fully by the Council. Issues raised during the debate included the difficult position of the economy for council finance, the high costs of borrowing, the reprofiling of debt to move to short-term borrowing until interest rates reduced, the impact of the homelessness crisis, and lack of funding for Councils in general, set against the Council’s investment into council housing. Alternative views were expressed raising questions about financial management, public reporting, the level of debt, and choices on investments.
The recommendations in the report were put to a vote and approved.
RESOLVED (by 13 votes to 8):
(1) To approve the Annual Treasury Management report 2023/24 for publication (attached as Annex 1 in the Council agenda); and
(2) To approve the 2023/24 Prudential and Treasury Indicators included in the report.
18 Treasury Management Annual Report 2023/24 PDF 402 KB
Report of Director of Finance and Performance
Lead Cabinet member: Councillor Daniel Butcher
Additional documents:
Decision:
Recommended to Full Council (Budget and policy framework):
(1) To consider and approve the Annual Treasury Management report 2023/24 for publication.
(2) To approve the 2023/24 Prudential and Treasury Indicators included in the report.
Minutes:
The Cabinet considered the report of the Director of Finance and Performance, covering the activities and performance of the Treasury Management service during 2023/24.
Visiting member, Councillor Smart, addressed the Cabinet on this item. Councillor Smart reiterated comments made previously, in relation to last year’s treasury management report and the CIPFA Assurance Review. Commenting on this year’s report, he referenced the short-term debt position of the Council, which was now reported at £80 million (£191 million overall debt). He raised concerns about the cost of the debt annually to the council, when compared to the current financial pressures and the council’s overall financial sustainability.
In response, the Director of Finance and Performance advised on the significant impact of rising interest rates on the Council’s borrowing and debt structure strategy over the past few years. Action taken by the council were in line with advice received from its treasury advisors. To respond to the financial challenges, the council would continue with its significant savings programme of work, as set out in the Stability and Growth programme, that also included significant controls and restrictions on further capital investments.
Recommended to Full Council (Budget and policy framework):
(1) To consider and approve the Annual Treasury Management report 2023/24 for publication.
(2) To approve the 2023/24 Prudential and Treasury Indicators included in the report.
Reason for decisions:
It is the requirement of CIPFA Treasury Management in the Public Sector Code of Practice (the Code).