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The Cabinet considered a report
of the Executive Director (Finance and Resources) presenting the
Treasury Management Report covering the treasury management
activity and compliance with the treasury management strategy for
both quarter three and the period from April to December
2024.
 
Resolved:
 
1. That the Quarter Three
Treasury Management Report for 2024/25, be approved.
 
2. That it be noted that
treasury management activities were carried out in accordance with
the CIPFA (The Chartered Institute of Public Finance and
Accountancy) Code of Practice for Treasury Management in the Public
Sector during the period from April to December 2024.
 
3. That it be noted that the
loan and investment portfolios were actively managed to minimise
cost and maximise interest earned, whilst maintaining a low level
of risk; and
 
4. That it be noted that
£4.490m of interest and income distributions for all
investments were earned during this nine-month period at an average
rate of 4.56%. Also, the value of the externally managed funds
increased by a net of £3.098m due to changes in the unit
price, giving a combined overall return of 7.71%.
 
5.That it be noted that the
level of borrowing from the Public Works Loan Board (PWLB)
(excluding debt relating to services transferred from Essex County
Council on 1st April 1998) remained at £347.3m (Housing
Revenue Account (HRA): £74.2m, General Fund: £273.1m)
during the period from April to December 2024 at an average rate of
3.46%.
 
6.That it be noted that the
level of financing for ‘invest to save’ capital schemes
decreased from £8.03m to £7.93m during the period from
April to December 2024.
 
Reasons for
decisions:
 
The CIPFA Code of Practice on
Treasury Management recommends that Local Authorities should submit
reports regularly. The Treasury Management Policy Statement for
2024/25 set out that reports would be submitted to Cabinet
quarterly on the activities of the treasury management
operation.
 
Other options:
 
There are many options
available for the operation of the Treasury Management function,
with varying degrees of risk associated with them. The Treasury
Management Policy aims to effectively control risk to within a
prudent level, whilst providing optimum performance consistent with
that level of risk.
 
Note: This is an Executive
Function
Not eligible for
call-in.
Cabinet Member: Cllr
Collins