Councillor Janette Williamson introduced a report which informed that the Authority’s treasury management activity was underpinned by CIPFA’s Code of Practice on Treasury Management (“the Code”), which required the production of annual Prudential Indicators and a Treasury Management Strategy Statement on likely financing and investment activity.  The Code also recommended that Members were informed of treasury management activities at least twice a year.

This report fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Department for Communities and Local Government (CLG) Investment Guidance. 

Proactive Treasury Management activity had resulted in savings of £9.4 million:

·  £7 million via a combination of a revised in-year Minimum Revenue Provision (MRP) calculation and associated backdated MRP adjustments.

·  £2.4 million in year from interest costs deferred due to the use of internal resources.

The level of Capital Financing Debt, including the Merseyside Residuary Body Debt managed by the Council on behalf of the constituent authorities had been £191 million at 31 March 2017.  This was a reduction of £74 million since 1 April 2012.

The Cabinet noted that the Council had complied with the Prudential Indicators as set out in the agreed Treasury Management Strategy for 2016/17. 

Councillor Williamson informed that the Council was always looking for new and innovative approaches to Treasury Management.

Councillor Phil Davies drew attention to the fact that proactive Treasury Management activity had resulted in savings of £9.4 million:

• £7 million via a combination of a revised in-year Minimum Revenue Provision (MRP) calculation and associated backdated MRP adjustments.

·  £2.4 million in year from interest costs deferred due to the use of internal resources.

Councillor Davies reported that this was a good outcome and he thanked and congratulated the Treasury Management Team on their excellent work which had brought about impressive results.  He hoped that these fantastic efforts would continue during the current Financial Year as the Council had more difficult challenges to meet.

The Cabinet noted that this was a key decision which affected all Wards within the Borough.

RESOLVED: That

(1)  the Treasury Management Annual Report for 2016/17 be agreed; and

(2)  the saving of £9.4 million from capital financing activities in 2016/17 be noted.