Issue - meetings

REPORT OF THE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the Treasury Strategy for 2025/26, as at the end of June 2025.

RESOLVED: That Cabinet noted the position of Treasury Management activity as at the end of June 2025.

REASON FOR DECISION: To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio recording – 58 minutes 10 seconds

Councillor Daniel Allen informed the Cabinet that the Chair of the Finance, Audit and Risk Committee, Councillor Sean Nolan, was not in attendance having given apologies, however, had provided a written statement that was relayed to the Cabinet on his behalf, which highlighted the following:

·             Higher than anticipated interest rates had led to an income increase of £1 million.

·             Internal borrowing for capital projects should be considered against the ability to raise investment revenue and other associated charges.

·             Any investments in a local authority affected by Local Government Reorganisation would move to the successor unitary authority.

·             Risks associated with Government and local authorities were lower than banks and building societies.

·             Limits to where investments could be made based on changes to the agreed strategy.

Councillor Ian Albert, as Executive Member for Resources, presented the report entitled ‘First Quarter Treasury Management Review 2025/26’ and advised that:

·             Reviews for the Capital Monitoring and Treasury Management had been split into separate reports to allow Members of the Finance, Audit and Risk Committee to debate each part separately.

·             The report confirmed that the treasury management was compliant within the quarter. Returns on investments were higher due to high balances generated by capital slippage and increased income from higher than anticipated interest rates.

·             Paragraph 8.11 and 8.12 detailed the split of investments which were mainly placed in local authorities and the Government.

Councillor Ian Albert proposed and Councillor Amy Allen seconded and, following a vote, it was:

RESOLVED: That Cabinet noted the position of Treasury Management activity as at the end of June 2025.

REASON FOR DECISION: To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.