Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
To approve the Treasury Management - Annual
Report 2020-2021 and Activity Monitoring Quarter One
That Cabinet recommend that Council be asked to note:
1. The Council operated within the overall approved Prudential and Treasury Management Indicators, and also within the requirements set out in the Council’s approved Treasury Management Policy Statement during 2020-2021, however due to the reprofiling of some capital programmes the operational boundary for commercial activities was slightly in excess of the best estimate included in the Treasury Management Strategy presented to Council on 3 March 2021.
2. That revenue underspends of £2.3 million for the General Revenue Account and £805,000 for the Housing Revenue Account (HRA) were generated from treasury management activities in 2020-2021.
3. That revenue underspends of £1.4 million for the General Revenue Account and £11,000 for the HRA are forecast from treasury management activities in 2021-2022.
That Cabinet notes:
1. That two of the three credit rating agencies have downgraded the UK’s credit rating. If the remaining credit rating agency follows suit the Director of Finance would lower the minimum sovereign rating in the Annual Investment Strategy in line with the delegated authority approved by Council on 17 July 2020.
2. The financial information included in this report is based on the ‘Capital Budget Outturn 2020-2021 including Quarter One Capital Monitoring 2021-2022’ report also on the agenda for this meeting. The capital report is subject to a report being separately approved by Cabinet also at this meeting. Therefore, if this approval is not obtained, a revised version of this report would be presented to Council on 21 July 2021.
3. The Council’s external borrowing decreased during 2020-2021 due to repayment of a loan and no new loans were taken out during the financial year.
Report author: Sarah Hassell
Publication date: 08/07/2021
Date of decision: 07/07/2021
Decided at meeting: 07/07/2021 - Cabinet