Issue - meetings

AGREED that Executive:

1.    Note the mid-year Prudential Indicator results for 2024/25 as the Council’s current position in relation to capital finance activities and overall indebtedness which was detailed in table one to five in the report.

2.    Note the performance of the treasury management function against the Council’s approved strategy for the 2024/25 financial year to date detailed in paragraphs 4.33 to 4.38 in the report.

The Executive Member for Finance submitted a report for Executive’s consideration. The purpose of the report was to provide an important update to Executive on performance relating to the Council’s borrowing, investments, and cash-flow for the 2024/25 financial year to meet the requirements of the CIPFA Treasury Management Code of Practice and the Local Government Act 2003.

Members were advised the report should be read in conjunction with the Council’s revenue and capital quarter two budget monitoring report for 2024/25 to understand the full financial position of the Council.

The report also provided the mid-year Prudential Indicators results for 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Capital Finance, which is best practice in terms of governance in this area.

The Council’s treasury management strategy for 2024/25 (including prudential indicators) was approved at the annual budget setting meeting on 8 March 2024. The Authority both borrows and invests substantial sums of money to provide liquidity for its revenue and capital plans, and was therefore exposed to various financial risks, including the potential loss of invested funds and the revenue effect of changing interest rates. The successful identification, monitoring and control of risk remained central to the treasury management strategy each year.

The Council was a net borrower overall. The borrowing required to fund its capital programme was significantly higher than its normal cash balances that were available for operational purposes and investments. As a result, the timing of capital financing decisions has a significant impact on the overall treasury strategy within the Council, the total cost involved and how risk was managed.

AGREED that Executive:

1.    Note the mid-year Prudential Indicator results for 2024/25 as the Council’s current position in relation to capital finance activities and overall indebtedness which was detailed in table one to five in the report.

2.    Note the performance of the treasury management function against the Council’s approved strategy for the 2024/25 financial year to date detailed in paragraphs 4.33 to 4.38 in the report.

OPTIONS

No other options were put forward as part of the report.

REASONS

The recommendations above would fulfil the following for the local authority:

-        Compliance with the CIPFA Prudential Code for Capital Finance for local authorities.

-        Compliance with the CIPFA Treasury Management Code for local authorities.

-        Compliance with the Local Government Act 2003 Section 1 in relation to borrowing.