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The Assistant Director – Finance introduced the report of the Director of Resources which provided the mid-year position for the Council’s Treasury Management activity. The Council’s treasury management activity ws underpinned by CIPFA’s Code of Practice on Treasury Management which requires the production of an annual Treasury Management Strategy Statement on likely financing and investment activity and recommended that Members were informed of treasury management activities at least twice a year. The report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Department for Levelling Up, Housing and Communities (DLUHC) Investment Guidance.

It was reported that at the Mid-Year point the Treasury Management budget forecast for the current year was for an overspend of £0.1 million. The forecast overspend was due to an increase in the interest rate environment, which would impact upon the borrowing costs of the Council. Some of the increase in interest cost would be offset by higher interest generated on Treasury Management investments. This position was incorporated into the Quarter 2 Revenue Monitoring report.

In response to a query, the Assistant Director of Finance clarified that the investment in the Public Sector Investment Fund was in accordance with treasury management best practice and expected to yield financial benefits on a long-term basis.

Resolved – That the Treasury Management Mid-Year Report for 2022/23 be noted.