This report reviews the Treasury Management activity which took place from 1st April 2019 to 31st March 2020.

Peter Robinson, interim Assistant Director of Finance, submitted a report on the Annual Treasury Management Review 2019/20.  The report stated that the Treasury Management Strategy required an Annual Outturn Report reviewing the Treasury Management activity which had taken place during the year.  This report had been delayed due to the need to focus on the finalisation of the 2017/18 Statement of Accounts audit process.  The report had appended the Council’s Borrowing and Investment Portfolios for the Committee’s information.

The report stated that the Council had continued to finance capital expenditure through maximising the use of capital receipts, capital grants and internal borrowing.  In order to take advantage of low borrowing rates that were considered to be good value and to reduce the refinancing risk associated with existing internal borrowing, £45m of external borrowing (from the PWLB) had been taken out in 2019/20 at an average interest rate of 1.8%.  Overall, the Council had under-borrowed by £185.607m as at 31 March 2020, after taking account of the £45m new loans. This had avoided the Council having to budget for and pay out external interest costs in the order of £6.069 million, based on the average rate for the existing debt portfolio of 3.27%.  Against the 2019/20 General Fund budget there had been an overall net General Fund underspend in respect of interest receivable/payable of £0.579m. 

Resolved:     That the Treasury Management Outturn Report for 2019/20 be noted.