6 REVIEW OF PRUDENTIAL LIMITS AND TREASURY MANAGEMENT OUTTURN 2021/22 PDF 387 KB
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.
Additional documents:
Minutes:
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.