Issue - meetings

Treasury Management Outturn 2023/24 and Quarter 1 2024/25 Update

 

 

Meeting: 25/07/2024 - Audit and Governance Committee (Item 18)

18 Treasury Management Outturn 2023/24 and Quarter 1 2024/25 Update pdf icon PDF 657 KB

This report sets out the monitoring of the Council’s Treasury Management function for the period 1 April 2023 to 31 March 2024.

A surplus of £789k has been achieved through a reduced need to carry out temporary borrowing due to high cash balances as well as increasing interest rates achieved on the Councils investments.

The report also sets out the Quarter One performance for 2024/25 which forecasts an overspend of £1.4m due to reduced investment income resulting from reducing cash balances.

Minutes:

The 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 'B' to these Minutes in the Minute Book.

 

The report set out the monitoring of the Council’s Treasury Management function for the period 1 April 2023 to 31 March 2024.

 

The Bank of England froze the bank rate at 5.25% in June which was the 7th consecutive freeze on the rate, inflation had also fallen to 2%. Within that result there were still areas such as the service sector where they were still seeing high levels of inflation, the current economic forecast was for quarter 3 of this academic year from 5% to 4.5% by the end of this year.

 

A surplus of £789k had been achieved through a reduced need to carry out temporary borrowing due to high cash balances as well as increasing interest rates achieved on the Councils investments.

 

The report also set out the Quarter One performance for 2024/25 which forecasts an overspend of £1.4m due to reduced investment income resulting from reducing cash balances.

 

The Chief Financial Officer (CFO) provided the following information in response to questions from the Committee:

 

  • To tackle the housing issue, it appeared that houses were being purchased quickly which resulted in money going out of the door quicker than was expected meaning there was an in-year deficit.
  • It wasn't expected that the cash balances would be as low as forecast in the budget.

 

RESOLVED that:

 

1) note the reported activity of the Treasury Management function for 2023/24

2) Note the Reported activity of the Treasury Management function for April to June 2024