Decision details

The Strategic Director (CF) presented a report on the Annual Treasury Management Review of 2019/20, including the Prudential Code.

In response to a Member’s question regarding the Council’s cash reserves, the Strategic Director (CF) confirmed that the vast majority of these were allocated, including £10M for Council Tax and Business Rates, the majority of the former being collected on behalf of HCC; £10M for restricted use capital receipts; £13M for Capital projects; £17M HRA balance for payment of debt; and £5M for HRA interest rate fluctuations.

In reply to another Member’s question in respect of Government financial support to SBC throughout the Covid-19 pandemic, the Strategic Director (CF) stated that £1.2M had been received.  The latest Government Income Guarantee Scheme including funding towards items such as lost car parking income, but excluded loss of income relating to Council Tax, Business Rates, Investments, all rents and Third Party Local Authority Leisure Providers (e.g. Stevenage Leisure Limited).  She estimated that the Council may receive a further £1.5M to £1.7M of further Government support funding, bringing it to a maximum total of £3M, which was unlikely to cover 50% of SBC’s overall losses during the pandemic.  She was concerned that the Government’s support funding was very much based on what had occurred since March 2020, and did not take into account the likely continued reduced income in 2021 and beyond.

It was RESOLVED that, subject to any comments from the Executive, the 2019/20 Annual Treasury Management Review be recommended to Council for approval.