Issue - meetings

Report of the Executive Director Finance and Commercialisation (S151 Officer)to inform Governance Committee of the Treasury Management activities and performance for 2021/22 against the approved Prudential Indicators for External Debt and Treasury Management.

The Committee considered and noted the report of the Executive Director of Finance and Commercialisation & S151 Officer detailing the Treasury Management activities and performance for 2021/22 against the approved Prudential Indicators for External Debt and Treasury Management. 

The Committee discussed the following:

·  Inflationary impact on capital and interest rates;

·  pressures of pay increases;

·  Budget process 2022/23 starting with a deficit of £23m;

·  Residual effects of Brexit;

·  Increase in Public works – impacts on the capital programme (SEND, housing stock);

·  Long term loan from HCC relating to the transfer of debt in 1997 at the creation of Southampton as a Unitary authority;

·  Credit rating and how this would be managed now and in the future; and

·  HRA borrowing up by about £30m relating to capital programme expenditure last year on fire safety, sprinkler works and ongoing maintenance works.

RESOLVED

(i)  To note the Treasury Management activities for 2021/22 and the outturn on the Prudential Indicators; and

(ii)  To note that the continued proactive approach to Treasury Management has led to reductions in borrowing costs and safeguarded investment income during the year.