To approve the treasury management outturn for 2019/20.

Council considered a report from the Cabinet Member Finance and Corporate Services which set out the treasury management outturn for 2019/20. The report was introduced by the Cabinet Member Finance and Corporate Services who proposed the recommendation and paid tribute to the work of officers to ensure cash reserves and money on deposit achieved good interest returns.  Effective treasury management had contributed to the underspend in capital investment and a reduction in borrowing and long term liabilities. The council had used cash reserves for projects in order to reduce the requirement for borrowing and support the reduction of the total external debt.

The following principal points were raised during the debate:

·         Treasury management officers were praised for their work to maximise returns and that the style of the report was easy to read and understand.

·         The lack of an increase in average salaries in Herefordshire was raised. This was inconsistent with the trend in the West Midlands and it was queried whether this was the consequence of a lack of growth in the county.

·         It was queried whether the council could apply for coronavirus business recovery loans to reduce liabilities.

·         The problem of the relocation of individuals into the county from more affluent areas and the impact on the spending power of local residents was raised.

The Leader seconded the recommendation and explained that there was a concern about growth in the county. The slow rate of growth had endured for 10 years and was a problem which had been inherited by the new administration. The building of a new road would not immediately produce growth; road building programmes were being reviewed by the administration in the context of climate change. 

The recommendation was put to the vote and was carried by a simple majority of the Council.

RESOLVED: That the treasury management outturn for 2019/20, as detailed in appendix 1, is approved.