Issue - meetings
Treasury Management Update Quarter 1 2024/25
Meeting: 11/09/2024 - Cabinet (Item 195)
195 Treasury Management Update Quarter 1 2024/25 
PDF 406 KB
Lead Member – Councillor Gwilym Butler, Portfolio Holder for Finance, Corporate Resources and Communities
Lead Officer - Ben Jay
Additional documents:
- 20240911 Appendix A - Shropshire Council Monthly Investment Report June 2024, item 195
PDF 342 KB
- 20240911 Appendix B Prudential Indicators for Quarter 1, item 195
PDF 102 KB
- 20240911 Appendix C Prudential Borrowing Approvals, item 195
PDF 825 KB
- 20240911 Appendix D Economic Background and Borrowing Update, item 195
PDF 162 KB
Decision:
RESOLVED:
That Cabinet:
1. Noted the summary of the wider economic environment and the Council’s borrowings and investments set out in Appendix A
2. Noted the performance within prudential indicators for quarter 1, 2024/25 (Appendix B)
Minutes:
The Portfolio Holder for Finance, Corporate Resources and Communities presented the report which outlined the treasury management activities of the Council in the first quarter of 2024/25. It highlighted the economic environment in which treasury management decisions have been made and the interest rate forecasts of the Council’s Treasury Advisor, Link Asset Services. It also updates Members on the internal treasury team’s performance.
Concern was expressed regarding the council’s level of borrowing, short-term liquidity and the level of investments which had fallen by £48.3 million in the last 12 months, indicating a misalignment between spending and income. The Portfolio Holder advised that the Council had historically held large cash balances compared to neighbouring councils, such as Telford and Wrekin, which had significantly higher borrowing levels. The Council had been fortunate not to borrow extensively in the past, but increasing demand had necessitated the use of cash balances. It was emphasised that it was better to use available funds rather than borrow if not necessary.
Members referred to a report stating that short-term funds were secured for a week over the end of the month to manage cash flow, resulting in a payment. Members sought assurance that this was a one-off occurrence, and that the Council's cash flow and liquidity were stable. The Executive Director for Resources explained that the short-term loan was taken to ensure financial security at the end of the financial year due to market uncertainties. He assured members that it was not a regular occurrence and had minimal impact on overall investment delivery.
RESOLVED:
That Cabinet:
1. Noted the summary of the wider economic environment and the Council’s borrowings and investments set out in Appendix A
2. Noted the performance within prudential indicators for quarter 1, 2024/25 (Appendix B)