Issue - meetings

This report sets out the monitoring of the Council’s Treasury Management function for the period 1 April 2021 to 30 September 2021. A surplus of £626k will be achieved through lower borrowing costs due to historically low interest rates and higher cash balances held by the authority.

The report also provides a brief update to the changing regulatory environment on Treasury Management.

The Acting Assistant Chief Financial Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book. The Committee was aware of the requirement under the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management Code of Practice that regular monitoring of the Treasury Management function was reported to elected Members.

The report set out performance within the context of current economic environment and a tabulation of interest rate projection suggesting an expectation that interest rates could start to increase from June 2022. It was also reported that the impact of inflation and particularly its effect upon gas and electricity prices remained the biggest concern.

The report set out the monitoring of the Council’s Treasury Management function for the period 1 April 2021 to 30 September 2021 and it was reported that an anticipated  surplus of £626k was expected through lower borrowing costs due to historically low interest rates and higher cash balances held by the Authority.

Council borrowings and Council investments, both as at 30 September 2021, were set out for the Committee together with the applicable interest rate in each case. It was reported that a recent audit of the Treasury Management function had provided assurance that a sound control framework was in place with key controls consistently applied. It was also confirmed that the agreed Treasury Management Strategy had been complied with during the period 1 April to 30 September 2021. In response to questions, the Committee was informed that the BCP Council was at the low end of the spectrum in terms of borrowing in comparison with other Councils and confirmation was provided that any additional borrowing would always be underpinned by a robust business case and subject to proper approval by the Council.

The report also provides a brief update to the changing regulatory landscape as it related to Treasury Management and it was explained that, whilst currently still out for consultation, the new investment framework was likely to be in place when setting the Strategy for 2022/23. Initial assessment of the framework was that it was likely to be supportive of the BCP Council approach.

RESOLVED that the Audit and Governance Committee notes

(a)  the reported activity of the Treasury Management function for April to September 2021;

(b)  the update provided for the Committee on the Treasury Management regulatory environment .

Voting: Unanimous