Issue - meetings

AGREED that Executive

1.    Note the Prudential Indicators for 2024/25 as the Council’s year-end position in relation to capital finance activities and overall indebtedness, detailed in tables one to five in the report.

2.    Note the performance of the treasury management function against the Council’s approved strategy for 2024/25, detailed in paragraphs 4.32 to 4.37 of the report.

The Executive Member for Finance submitted a report for Executive’s consideration. The purpose of the report provided important information regarding the regulation and management of the Council’s borrowing, investments, and cash-flow for the 2024/25 financial year.

It was a requirement of the Council’s reporting procedures under the CIPFA Treasury Management Code of Practice, and by regulations issued under the Local Government Act 2003, to produce an annual review that covered the treasury activity and compared the performance against the original strategy set by the Council.

Members were advised that the report should be read in conjunction with the Council’s revenue and capital outturn report for 2024/25 also presented to Executive earlier in the meeting as both had a significant impact on treasury arrangements.

The report also provided the Prudential Indicators results for 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Capital Finance, which was 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 Council 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 investment purposes. As a result, the timing of capital financing decisions had a significant impact on the overall treasury strategy within the Council and how risk was managed.

The structure of the report to assess performance against the 2024/25 approved treasury strategy was as follows: -

·         Capital expenditure and financing for 2024/25

·         The Council’s overall borrowing need

·         Prudential Indicators and any compliance issues

·         Treasury position as at 31 March 2025

·         The economic background for the 2024/25 financial year

·         A summary of the Treasury Management Strategy approved for 2024/25

·         Treasury Management activity and compliance during 2024/25

OPTIONS

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

AGREED that Executive:

1.    Note the Prudential Indicators for 2024/25 as the Council’s year-end position in relation to capital finance activities and overall indebtedness, detailed in tables one to five in the report.

2.    Note the performance of the treasury management function against the Council’s approved strategy for 2024/25, detailed in paragraphs 4.32 to 4.37 of the report.

REASONS

The recommendations in the report 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.