Lead Member – Councillor Gwilym Butler – Portfolio Holder for Finance, Corporate Resources and Communities

Report of James Walton – Executive Director of Resources

RESOLVED:

That Cabinet reviewed the position as set out in the report:

a)              Reducing cash balances, the result of the Council’s long term financial management approach, indicates a need to take out external borrowing during 2024/25, as reflected in the Treasury Management Strategy 2024/25. This brings to an end a period of strong cash balances which have enabled reduced capital finance costs over the last 10 years.

b)              Noting the summary of the wider economic environment and the Council’s borrowings and investments set out in Appendix A

c)              Noting the performance within prudential indicators for quarter 3, 2023/24 (Appendix B)

The Portfolio Holder for Finance, Corporate Resources and Communities presented the report which provided an update on the treasury management activities of the Council in the third quarter of 2023/24, and highlighted the economic factors that influenced the decisions. It also reviewed the performance and compliance with the Treasury Management Strategy.

Members noted that the internal treasury team achieved a return of 5.28% on the Council's cash balances, outperforming the benchmark by 0.09% and generating additional income of £16,290 in the quarter (the benchmark rate is the commercial rate for interbank short term borrowing).

However, Council cash balances are expected to reduce due to the use of reserves in recent years and the ongoing capital investment programme, which may lead to external borrowing being required in 2024/25.

RESOLVED:

That Cabinet reviewed the position as set out in the report:

a)              Reducing cash balances, the result of the Council’s long term financial management approach, indicates a need to take out external borrowing during 2024/25, as reflected in the Treasury Management Strategy 2024/25. This brings to an end a period of strong cash balances which have enabled reduced capital finance costs over the last 10 years.

b)              Noting the summary of the wider economic environment and the Council’s borrowings and investments set out in Appendix A

c)              Noting the performance within prudential indicators for quarter 3, 2023/24 (Appendix B)