Issue - meetings
Treasury Management Monitor and Prudential Indicators 2011/12
Meeting: 01/11/2011 - Executive (Item 63)
63 Treasury Management Monitor 2 Mid Year Review and Prudential Indicators 2011/12 
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This report provides an update on treasury management activities for the first six months of the 2011/12 financial year, in compliance with statutory requirements, and recommends changes to the 2011/12 Treasury Management Strategy Statement and Prudential Indicators in the light of the HRA reform changes.
Additional documents:
Decision:
[See also under Part B Minutes]
RESOLVED: (i) That the Treasury Management activities in 2011/12 be noted.
REASON: In accordance with statutory requirements and to ensure the continued performance of the Council’s Treasury Management function.
Minutes:
[See also under Part B Minutes]
Members considered a report which provided an update on the Council’s treasury management activities for the first six months of the 2011/12 financial year, in compliance with statutory requirements. It also recommended changes to the 2011/12 Treasury Management Strategy Statement (TMSS) and Prudential Indicators, in the light of the Housing Revenue Account (HRA) reform changes.
The report set out details of treasury management performance against the current national background of a stagnating economy, falling employment and rising inflation. It was noted that investments had remained within the Council’s approved credit limits and that investment activity had earned an interest rate return of 1.5%, which was higher than the average London Inter-Bank Deposit rate and base rate for the period. Loans taken in 2011/12 were below the original target of 5%; the target rate at this stage for the remainder of the year was 4.3%.
Reform of the HRA subsidy arrangements was expected to take place on 28 March 2012. It would involve the Council paying £112m to the Department of Communities and Local Government (CLG), removing the obligation to make annual payments to the CLG through the housing subsidy system. This payment would increase the Council’s level of borrowing, requiring approval of a revised borrowing limit as a change to the Prudential Indicators included in the TMSS approved by Council in February 2011.
RESOLVED: (i) That the Treasury Management activities in 2011/12 be noted.
REASON: In accordance with statutory requirements and to ensure the continued performance of the Council’s Treasury Management function.