To approve the treasury management outturn for 2017/18.

Council considered a report from the Cabinet Member Corporate Strategy and Budget concerning the Treasury Management outturn for 2017/18. The report was introduced by the Cabinet Member Finance and Corporate Services who reported that the underspend currently reported was attributable to early reporting of budget receipts. There was an intention to improve spend profiles and the recent LGA challenge process had determined that the balance sheet was relatively healthy. A note of caution was sounded regarding the greater degree of uncertainty in the financial affairs of the country caused by current circumstances.

Councillor NE Shaw proposed and Councillor RJ Phillips seconded the recommendation to approve the treasury management outturn 2017/18.

Members of the Council made the comments below in the discussion that followed:

·         The exposure to the increased rates from the Public Works Loan Board was raised and whether capital receipts could be used to repay the loans. The Cabinet Member Finance and Corporate Services confirmed that methods of paying off the loans as early as possible were being investigated.

·         A query was raised regarding an ethical investment framework at the Council. The Cabinet Member Finance and Corporate Services explained that he would investigate whether any of the Council’s investments would be potentially classified under an ethical framework.

·         The projected growth rate was disappointing and external borrowing should be closely monitored. The Cabinet Member Finance and Corporate Services agreed that external borrowing should be kept to acceptable levels.

·         The utilisation of usable reserves was queried and internal borrowing. The Cabinet Member Finance and Corporate Services confirmed that if internal borrowing was not available then external borrowing would be considered within prudent limits.

·         Clarification was sought regarding those Council-owned properties and assets sold over the last 18 months and the income gained from the sales. The Cabinet Member Finance and Corporate Services confirmed that a written response would be provided.

RESOLVED: That Council approves the treasury management outturn for 2017/18 at appendix 1.