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Issue - meetings

Treasury Management Mid-Year Report

 

 

Meeting: 21/11/2024 - Audit and Governance Committee (Item 308)

308 Treasury Management Mid-Year Report pdf icon PDF 994 KB

Purpose

To receive and discuss details of the Council's Treasury Management performance for the period 01 April to 30 September 2024 and Quarter 2 Treasury Management Prudential Indicators.

 

Recommendation

That the Audit and Governance Committee resolves to:

1.            Consider the Council’s Treasury Management performance for the period 1 April 2024 to 30 September 2024 and the Quarter 2 Prudential Indicators and recommended to Council for approval.

Additional documents:

Minutes:

The Deputy Chief Executive Officer introduced the Treasury Management Mid-Year Report and compared the position with the equivalent report from a year ago. Inflation was now lower but was forecast to be above the Bank of England’s target of 2% for most of 2025. The average rate of return on the Council’s investments was 4.68% compared to 4.78% last year on a broadly similar level of investments. Treasury returns were projected to be above the budgeted level by c. £376,000 on the expectation that the Bank of England’s Base Rate would remain unchanged until at least February 2025. The statutory override on unrealised capital losses was due to end on 31 March 2025 and, if it is not renewed by the government, the Council would have to ensure it had adequate reserves and balances in order to finance capital losses whether they were realised or unrealised. The economic forecast in Annex A had been prepared before the recent US election.

 

The Committee questioned whether returns were being maximised and requested an overview of Treasury Management from the Council’s advisors Arlingclose. The Deputy Chief Executive said that the Council had a diversified portfolio of investments and that security and liquidity rather than yield were the primary considerations.

 

That the Audit and Governance Committee resolved to:

  1. Note the Council’s Treasury Management performance for the period 1 April 2024 to 30 September 2024 and the Quarter 2 Prudential Indicators
  2. Recommend the Treasury Management Mid-Year Report to Council for approval.

 

 

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