Cabinet Member: Finance

Forward Plan Ref: 2022/088

Contact: Tim Chapple, Treasury Manager, tim.chapple@oxfordshire.gov.uk

Report by Director of Finance (CA7).

To provide a mid-term review of Treasury Management Activity in 2022/23 in accordance with the CIPFA code of practice.

Cabinet is RECOMMENDED to note the report, and to RECOMMEND Council to note the council’s treasury management activity the first half of 2022/23.

Recommendations agreed.

Cabinet received a report covering the treasury management activity for the first half of 2022/23 in compliance with the CIPFA Code of Practice on Treasury Management 2021.

Councillor Calum Miller, Cabinet Member for Finance, introduced the report.  He noted how turbulent the recent months had been in the world of finance.  However, the Council was holding more cash than expected and higher interest rates led to interest receivable being £1.4m higher than expected.

Councillor Miller had held discussions with officers about possible restructuring of the Council’s debt but the Treasury’s charge on restructuring made it a rather high hurdle.  Together with the fact that it is not anticipated that the Council will need to borrow more in this financial year, it is not proposed at this time to restructure.

Councillor Miller highlighted a new commentary in paragraphs 37 and 38 which outlined the real costs of the deficit in the High Needs Block amounting to £0.5m in lost interest this year rising to £2.7m annual loss by 2025/26.

Finally, he noted that the Treasury Management activity was predicted to contribute a £1.6m improvement over what was initially forecast. He was grateful to officers for managing the finances so well during a difficult period.

Councillor Miller moved the recommendations which were seconded by Councillor Sudbury and agreed.

RESOLVED to

note the report, and to RECOMMEND Council to note the Council’s treasury management activity the first half of 2022/23.