Issue - meetings

To present the prudential indicators and expected treasury operations.

RESOLVED –

(i)            The prudential indicators and limits for 2021/22 to 2024/25, including the authorised limit prudential indicator, be approved;

(ii)          The minimum revenue provision (MRP) statement be approved;

(iii)         The treasury management report appended to the report be approved.

Members received the council’s prudential indicators for 2021/22 to 2024/25 in a report which also set out the expected treasury operations for the period. It was noted that the authority was considered to be under-borrowed on the general fund, meaning that external funding had not been taken out even though decisions to fund projects had been made. The Council had managed to put off the need for external borrowing due in paert to the decision to delay paying off debt related to HRA. This debt was now being repaid at just under £3m per year, which would lead to pressure on cash flow. It was therefore likely external debt would be required to manage the general fund cash flow position. It was noted that interest rates were due to continue increasing in the short term but would hopefully plateau within the next couple of years.

The chairman thanks the Head of Finance and his team for their work on the reports.