Issue - meetings

The Portfolio Holder for Finance and Enabling presented the Treasury Outturn Report 2022/23 and in doing so explained that the report presented the draft outturn position on the Council’s Capital and Treasury Management Strategies, including all prudential indicators.  There was the requirement for progress in respect of this matter to be reported through the Executive Committee to Council. 

The 2021 Prudential Code included a requirement for local authorities to provide a Capital Strategy, a summary document approved by full Council, covering capital expenditure and financing, treasury management and non-treasury investments. The authority’s Capital Strategy, complying with the Chartered Institute of Public Finance and Accountancy’s (CIPFA’s) requirement, was approved by full Council on 27^th June 2022.

On 31^st March 2023, the authority had a position of net borrowing of £93.3 million arising from revenue and capital income and expenditure. The underlying need to borrow for capital purposes was measured by the Capital Financing Requirement (CFR), while usable reserves and working capital were the underlying resources available for investment. The Council was making returns in the region of 4 per cent for the balances it was investing in the short-term (working capital).  In terms of the Council’s borrowing position, the majority of the authority’s long-term debt was not due for repayment for at least 15 years.  Members were asked to note that as detailed in the report, the Council was complying with its prudential indicators.

During consideration of this item, Members commented that the report referenced a £5 million bank loan to the HRA and questions were raised about the reasons for this loan and the timeframes in which it would need to be repaid.  Officers explained that the loan was for the HRA capital programme and it was agreed that further information on this subject would be provided to Members after the meeting.

RECOMMENDED that

Council note the Treasury Outturn position for 2022/23.