Issue - meetings

This report presents the Council’s treasury management performance in 2019/20.

Following consideration, it was resolved that the Committee:

(1)      Received the report on the Council’s treasury management performance 2019/20;

(2)     Approved the 2019/20 prudential indicators.

The Committee received a report presenting the Council’s treasury management performance in 2019/20.

The following matters were considered:

a)            Source of funding, purchase of Emerald House. Following a question from a Member, the Committee was informed that the Council had utilised its cash balances to purchase Emerald House, rather than using funds loaned by the Public Works Loans Board. This had saved interest payable to the Board.

b)            Return on investments. The Committee noted that the Council received a rate of 0.8% interest on its investments. Officers informed the Committee that the investments made by the Council were guided by the principle of security of investment. This affected the risk which could be taken and in turn, the yield achievable. Officers informed the Committee that a return of 0.8% was higher than the London Inter-bank loan rate for last year. The Committee was informed that it would be difficult to attain a yield as high as 0.8% in the current year, as the Bank of England had cut interest rates to 0.1%.

c)            Environmental impact. Following a question from a Member, the Committee was informed that the guiding principles for the Council’s investments were security, liquidity and yield. In addition to those principles, environmental considerations would also be taken into account.

Following consideration, it was resolved that the Committee:

(1)      Received the report on the Council’s treasury management performance 2019/20;

(2)     Approved the 2019/20 prudential indicators.