Issue - meetings

To provide members with an update on Treasury Management performance and activity to ensure best practice is maintained (report of the Deputy Chief Executive (Corporate

Development) & S151 enclosed).

Consideration was given to the report of the Deputy Chief Executive (Corporate Development) and S151 which provided members with an update on Treasury Management performance and activity to ensure best practiced is maintained.

The Deputy Chief Finance Officer (PSPS) introduced the report, on behalf of the Interim Treasury and Investments Manager (PSPS) who had sent apologies. 

The report had been prepared in compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) code of practice on Treasury Management, which recommended that members be updated on treasury management activities regularly and the report ensured that SHDC was implementing best practice in accordance with the code.

The Q3 Treasury Management update was detailed at Appendix A.

The main points of the report and Appendix A were outlined in a visual presentation to the Committee, and an update of any elements that had changed since the end of 31 December 2022, which marked the end of the reporting period, were presented verbally. This included the following:

• an economic update by Link Group; a recent update included that inflation had fallen to 10.1 per cent and Gross Domestic Product (GDP) was 0.3% for February 2023;
• interest rate forecasts: since the report was written, an updated interest rate forecast had been received which predicted a peak of 4.5 per cent with the first decrease expected in December 2023;
• Annual Investment Strategy; investment performance to 31 December 2022 with an update that upcoming maturities had been reinvested and assurance given that a good return had been obtained; and
• the borrowing position as at 31 December 2022

Members thanked the Interim Treasury and Investments Manager (PSPS) and the Deputy Chief Finance Officer (PSPS) for the comprehensive report and presentation.

AGREED:

That after receipt and review of the report and Appendix A by members of the Governance and Audit Committee, the contents be noted.