Issue - meetings

This is a report to members on treasury management activity and performance during 2011/12 in accordance with the CIPFA Treasury Management Code of Practice. It is a requirement of the Code for this to be reported on to Council once Corporate Committee has considered it.  In addition it provides an update for members on treasury management activity during the first quarter of 2012/13.

The committee considered a report on the treasury management activity and performance during 2011/12 in accordance with the CIPFA Treasury Management Code of Practice.

Following the abolition of the Housing Revenue Account subsidy system and the re-adjustment of each authority’s housing related debt; £233.85m of the Council’s outstanding PWLB loans was repaid by the DCLG. This major change to the Council’s debt portfolio was reflected in the year end prudential indicators being reported.  

The committee noted that the early repayment of long term debt was not currently cost effective due to market conditions. However, the Treasury Management service were continually monitoring the position to utilise any available opportunities to save money on the interest rates of loans

The committee were informed that, since the attached report had been written, Moody’s rating agency had down graded most UK banks. Consequently, Nat West and the Royal Bank of Scotland had been withdrawn from the council’s lending list as they fell below the minimum criteria of Prime-1 short term credit rating, required under the Treasury Management Strategy.  Members noted that investments with Nat West had been withdrawn in response, but day to day banking was continuing.

The Committee were assured that the treasury management limits were closely adhered to and monitored on a daily basis.  We noted that a monthly performance report was also provided to the Chief Financial Officer in respect of this.

RESOLVED

1. That the Treasury Management Activity and Performance during 2011/12 and the first quarter of 2012/13 be noted.

2. That the Treasury Management Activity and Performance report progress to   full Council on the 16^th July 2012.