Decision details

(Minute 111)

The report of the Head of Treasury Services was submitted, reporting on the current performance for the 2011/12 financial year and the position regarding investments and borrowings at 30 September 2011.

The Head of Treasury Services reported on the impact of the global economic position and the implications for the Council in terms of investments and interest rates. He identified the range of factors which had caused the estimated General Fund net reduction against budget.

Members were pleased to note that it was anticipated that most of the funds would be recovered following the winding up of the Icelandic banks although this could be over a period of years. They acknowledged the contribution of the Local Government Association, acting on behalf of authorities, to the achievement of this successful outcome.

Whilst noting the significant sum required to “buy” the Council out of the Housing Revenue Account subsidy system, members welcomed the perceived long term benefit of the new arrangements.

Scrutiny Committee – Resources considered the report at their meeting of 23 November 2011 and their comments were noted.

Executive recommended that Council:-

(1)        notes the Treasury Management report for the first six months of 2011/12; and

(2)        approves the amendments to the Council’s Operational Boundary and Authorised Limit to allow the Council to borrow the funds required for the HRA financing regulations.