Issue - meetings

To update Council on the Treasury Management position of the Council for the first half of the 2022/23 financial year.

Councillor Tim Leaver moved, and Councillor Nesil Caliskan seconded, the report.

Councillor Tim Leaver introduced the report and asked the Council to note the activities of the Council’s Treasury management function over the half year period ended 30 September 2022. It shows the performance of the Treasury activities including borrowing that finances the Council’s investments in the borough, in line with the Council’s Corporate Plan which was agreed in February 2022.

The Ukrainian war, interest rates, the base rate going from 0.35% to 2.25%, the cost-of-living crisis which continues to be a hardship for residents as well as the inflation rate currently at 10.1% which have all had an impact on the Treasury management function.

It was highlighted that the borrowing outstanding has been reduced by £2.95m since 31 March 2022 to £1,012.2m as of 30 September 2022 which is funded by the Public Works Loan Board. The average interest rate for Enfield’s external debt was 2.54% as of 30 September 2022 compared to the average rate of 2.59% during 2022/23.

The Opposition expressed disappointment that the Council Plan was to repay the debt but instead the debt has doubled, and they have repeatedly warned the Administration of the risks of doing so. The debt has increased from £24m last year to £30m this year. The Council report states that the Council is revaluating its borrowing, and this is the first year where the Council has not been able to restructure its own debt. Over the next 2 years, there will be a proposed debt bubble of £192m and if this debt needs refinancing, the payments will increase and may result in £3m worth of cuts to front line services.

Members responded that if there is the prospect of getting lower interest rates then local authorities regularly revaluate, reprofile or restructure their debt and investments which has not been possible at the moment with record high interest rates. The Council’s transparent approach to its budgeting continues to be robust and resilient which allows members of the opposition to be able to scrutinise and ask questions with regards to the budget.

Following the debate, Members AGREED TO NOTE the report.

Councillor Alessandro Georgiou wanted it recorded that the Conservative Group would have voted against this item but did not on the basis it was for noting.