Report by Chief Operating Officer
34.1 The Cabinet considered a report by the Chief Operating Officer.
34.2 It was RESOLVED to note the Treasury Management performance in 2019/20 incorporating the Mid Year review for the first half of 2020/21.
34.3 This report fulfils the requirement to submit an annual/half yearly report in the form prescribed in the Treasury Management Code of Practice. Short term lending throughout the 18 month period covered achieved returns between 0.75% and 1.12%. The key principles of security, liquidity and yield are still relevant. Officers are currently investigating further opportunities within the strategy to increase investment income whilst minimising costs and maintaining security in a period of uncertainty.
Report by the Chief Finance Officer
28.1 The Committee considered a report by the Chief Finance Officer, which presented the outcomes of the Treasury Management team’s work for 2019/20 and a half-year position for 2020/21.
28.2 The Committee discussed:
· the potential impact of negative interest rates;
· expectations of the contribution to the Revenue budget;
· the short term loan from another authority and whether there was increased volatility which might require further loans of this type.
28.3 The Committee was advised that the Council’s Treasury advisors (Link) had confirmed that there were no actions necessary for this financial year to mitigate potential negative interest rates. The position was kept under review and may be reflected in the next iteration of the Treasury Management Strategy to be determined in February 2021.
28.4 It was confirmed that the contribution of Treasury Management to the Revenue Budget is projected to be lower than last year.
28.5 The inter-authority loan took place while Covid-19 related funding was unclear and the loan allowed for flexibility in providing support to the market and suppliers. Further such loans are not anticipated.
28.6 The Committee RESOLVED to note the report.