Issue - meetings

Consideration of recommendation AU 24/27 of the Audit Committee of 22 July 2024

The report provides an update on treasury management activity undertaken during April to May of the current financial year.  The treasury management outturn position for 2023/24 is also included in the report.

The report of the Director of Finance and Transformation provided an update on treasury management activity undertaken during April to May of the current financial year. The treasury management outturn position for 2023/24 was also set out.

The report provided an assessment of the current economic situation and interest rate forecasts together with a commentary on investments derived from cash flow surpluses, core cash balances and other long term cash balances.  A full list of investments held on 31 May 2024 was set out in Annex 1 to the report. 

Members received an update on the Lothbury Property Trust, who had for several months been in negotiations to find a suitable merger to enable investors to continue to hold shares within the property market.  Unfortunately the merger discussions did not provide the desired result and concluded with the termination of the Lothbury Property Trust on 30 May 2024.  The first tranche in respect of TMBC’s holdings had been paid back on 5 June 2024 and a further tranche on 5 July 2024.  Additional funds would be distributed as and when assets were sold and dividends would continue to be paid on income generating assets whilst the fund was in the process of securing the sale of assets. 

Member’s attention was drawn to the Treasury Management Annual Report for 2023/24 as set out at Annex 4 which provided a summary of the investment performance. The combined performance of the Authority’s investments exceeded the revised estimate by £866,137, and £1.272m when compared to the 2023/24 original estimates mainly due to the Bank Rate being held at 5.25% for longer than expected in 2023/24.

RECOMMENDED*: That the following be commended to Council:

(1)      the action taken in respect of treasury management activity for April to May 2024 be endorsed; and

(2)      the 2023/24 outturn position be noted.

*Referred to Council