Agenda item

To receive a report from the Deputy Chief Executive (S151)

Cabinet received a report* which provided Members with a review of activities and the prudential treasury indicators on actuals for 2022/23.

The following was discussed:

• The return rate of return at 1.84% seemed low, it was asked if this was expected at the beginning of the year. The Corporate Manager for Finance explained that next year’s return was expected to be better but reassured that this average return was good for this particular financial year.
• Asked whether the Council could mitigate rates set by the Bank of England the Corporate Manager for Finance explained that the Council could not.
• Asked why treasury investments had reduced by £11m, it was explained by the Corporate Manager for Finance that the Council had been holding Government money which made up the majority of that difference.
• It was noted that there seemed to be a discrepancy with the NHS figures. The Corporate Manager for Finance explained that the figures were all correct and the differences were due to loan payments being made.
• In relation to the interest received from Three Rivers Development Ltd it was asked how much was paid from their own earnings. The Corporate Manager for Finance explained that the repayments were based on loans to the company and were classified as working capital. 
• It was asked if officers could expand on the credit loss model being problematic. The Corporate Manager for Finance explained that any loan had risk attached to it and with factors such as the pandemic and the cost of living crisis negatively impacting the housing market, the likelihood of repayment was now less likely.
• Concern was raised over the financial management and the impairment of over £4.5m and was noted that this was a quarter of the loans to the company. The Corporate Manager for Finance explained that the Council had agreed to fund existing loans.
• Loans to other authorities was raised with concern that they might be outstanding. The Deputy Chief Executive (S151) explained that these loans were repaid and that there were no concerns of these loans not being repaid.
• It was asked if all members would be involved in decisions relating to Three Rivers Development Ltd, to which the Leader said decisions on this would go to Council and invited Councillors to attend Cabinet meetings to have an input.

The Cabinet NOTED the treasury activities for the year.

(Proposed by the Leader)

Reason for Decision: So that the treasury indicators could be approved and the Cabinet were kept updated on the treasury activities for 2022/23.

Notes:            (i) *report previously circulated and attached to the minutes.

(ii) At the meeting on 6^th June 2023 Cabinet approved the Treasury and Management Outturn Report. However, they should have made a recommendation to full Council instead. At their subsequent meeting on 4^th July 2023 Cabinet agreed to correct this and take the report to full Council on 19^th July with a recommendation from the Cabinet for approval.