Issue - meetings

[To approve the Treasury Management Activity Monitoring - Mid Year Review 2020-2021]

That Council be recommended to approve:

1.    That a mid-year review of the Treasury Management Strategy Statement has been undertaken and the Council has operated within the limits and requirements approved in March 2020.

2.    That revenue underspends of £1.8 million for the General Revenue Account and £682,000 for the Housing Revenue Account (HRA) are forecast from treasury management activities in 2020-2021, arising as a result of re-phasing of the capital programme and lower interest rates forecast on borrowing due to the impact on the economy of Covid-19.

3.    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 will lower the minimum sovereign rating in the Annual Investment Strategy in line with the delegated authority approved by Council on 17 July 2020.

That Cabinet notes:

1.    The financial information included in this report is based on the ‘Capital Programme 2020-2021 to 2024-2025 Quarter Two Review’ 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 18 November 2020.

Councillor Louise Miles presented the headlines from the update report on the Treasury Management Activity Monitoring.  She confirmed that the Council had operated within all the required rules and protocols.  There was a forecast revenue underspend of £1.8 million for the General Revenue Account and a £682,000 from the Housing Revenue Account. This was essentially as a result of the impact of Covid-19, the need to rephase the capital programme, and the reduced cost of borrowing as a result of lower interest rates.  Councillor Miles also reported on the position of two out of three credit rating agencies downgrading the UK's sovereign rating and an action that the Director of Finance would take under a previously approved delegated authority, if the third credit rating agency followed and downgraded the UK's credit rating.

Resolved:

That Council be recommended to approve:

1.    That a mid-year review of the Treasury Management Strategy Statement has been undertaken and the Council has operated within the limits and requirements approved in March 2020.

2.    That revenue underspends of £1.8 million for the General Revenue Account and £682,000 for the Housing Revenue Account (HRA) are forecast from treasury management activities in 2020-2021, arising as a result of re-phasing of the capital programme and lower interest rates forecast on borrowing due to the impact on the economy of Covid-19.

3.    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.

That Cabinet notes:

1.    The financial information included in the report is based on the ‘Capital Programme 2020-2021 to 2024-2025 Quarter Two Review’ 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 18 November 2020.