Issue - meetings

Treasury Mid-Term Report 2022/23

Meeting: 12/12/2022 - Council (Item 9)

9 Treasury Mid-Term Report 2022/23 pdf icon PDF 669 KB

Report of the Cabinet Member for Finance and Assets


The Cabinet Member Finance, Assets and Regeneration introduced the report, which set out the council’s treasury management activities up to September 2022. The global economy had changed significantly since the strategy was agreed, and the economic volatility that began in early 2022 had continued during the first six months of the financial year. This had been compounded by the additional volatility created in our domestic financial market by political turbulence in Westminster.

The report provided details of the outturn position for treasury activities for the first six months of this financial year, and highlighted compliance with the council’s policies previously approved by members in March 2022. The outturn forecast for this financial year at the time of the report being produced was that the General Fund would be in a deficit position against the budget of over £134,000, after the HRA had made its contribution for debt and received its share of investment income.

However, since September, and with a jump in interest rates and some additional interest due, the estimated outturn had now changed favourably, with a deficit of £35,000 now predicted. This would be updated accordingly for the 2022/23 revised budget. He added that all treasury management activities undertaken during the first six months of 2022/23 complied fully with the CIPFA Code of Practice and the Authority’s approved Treasury Management Strategy.

He thanked the Treasury Management Panel for providing an effective layer of additional oversight, and the finance team for their work throughout a busy year, and commended the report to Members.

The Mayor moved into Member questions:

  • One Member asked whether, with further increases in interest rates expected, this was being factored into the council’s calculations regarding projects like its major housing commitments. The Cabinet Member Finance, Assets and Regeneration assured them that they were receiving constant advice on this, though it would be challenging going forward.


The Mayor moved into debate, where Members made the following points:

  • The table on page 42 of the reports pack, which outlined the income return on investments for all 121 Arlingclose clients, highlighted the sterling job that the finance team had done.
  • It was clear from sitting on the Treasury Management Panel that the finance officers were diligent and especially careful about who they were lending to.
  • Managing financial affairs during a time of economic crisis was difficult, especially when they were very limited in terms of what they could do to increase revenue.
  • It was good to see that the council was mindful of divesting from its investments in fossil fuels as soon as possible.


The Cabinet Member Finance, Assets and Regeneration thanked councillors for their comments.

The Mayor moved to the vote, it was unanimously:


1.    The contents of this summary report of the treasury management activity during the first six months of 2022/23 be noted.

FOR: 37