Issue - meetings
Treasury Management End of Year Review 2025/26
Meeting: 16/06/2026 - Cabinet (Item 15)
15 TREASURY MANAGEMENT END OF YEAR REVIEW 2025/26 
PDF 140 KB
REPORT OF THE DIRECTOR – RESOURCES
The Council complied with its legislative and regulatory requirements throughout the year.
Additional documents:
Decision:
RESOLVED: That Cabinet noted the position of Treasury Management activity as at the end of March 2026.
RECOMMEND TO COUNCIL: That it:
(1) Approves the actual 2025/26 prudential and treasury indicators as detailed in Appendix B.
(2) Notes the annual Treasury Management Review for 2025/26 (Appendix B).
REASON FOR RECOMMENDATIONS: 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.
Minutes:
Audio recording – 2 hours 9 minutes 50 seconds
The Chair invited Councillor Vijaiya Poopalasingham, as Chair of the Finance, Audit and Risk Committee, to present the referral on this item. Councillor Poopalasingham advised that:
· Balances were declining due to more capital spend, which meant less funding was available to invest. However, interest rates had stayed higher than expected.
· Interest returned from investments had been lower than the previous year but higher than expected at the beginning of the financial year.
· Inflation had not come down quickly, meaning that the higher than anticipated interest returns would be balanced out by higher spending in other areas.
· The current allocation of investments was shown on page 508 of the Agenda Reports Pack.
· Outstanding investments as of 31 March 2026 were shown at paragraph 8.9 of the report.
· There had been a good return on investments, but this could not always be guaranteed in the long-term.
Councillor Ian Albert, as the Executive Member for Resources, presented the report entitled ‘Treasury Management End of Year Review 2025-26’ and advised that:
· £2.08M had been returned from interest on investments, and while higher inflation benefitted their investments, it also impacted North Herts residents, and they sought to balance Council funding wisely.
· The position at the end of year was similar to the position at the end of Q3.
· They were required to note the breach of the strategy earlier in the year as described at paragraph 8.1 of the report, and actions would ensure this would not happen again.
· Investments continued to focus on security and liquidity first.
· Investments at the year end were shown at page 508 of the Agenda Reports Pack, and the one bank investment had now matured.
In response to a question by Councillor Mick Debenham, the Director – Resources advised that Surrey County Council had not gone through Local Government Reorganisation (LGR) yet, but there was no risk associated with this as any outstanding investments in authorities that went through LGR would be transferred to one of the new authorities.
Councillor Ian Albert proposed and Councillor Sean Nolan seconded and, following a vote, it was:
RESOLVED: That Cabinet noted the position of Treasury Management activity as at the end of March 2026.
RECOMMENDED TO COUNCIL: That it:
(1) Approves the actual 2025/26 prudential and treasury indicators as detailed in Appendix B.
(2) Notes the annual Treasury Management Review for 2025/26 (Appendix B).
REASON FOR RECOMMENDATIONS: 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.
Meeting: 10/06/2026 - Finance, Audit and Risk Committee (Item 12)
12 TREASURY MANAGEMENT END OF YEAR REVIEW 2025/26 PDF 140 KB
REPORT OF THE DIRECTOR – RESOURCES
To consider the Treasury Management End of Year Review.
Additional documents:
Decision:
RECOMMENDED TO CABINET: That Finance, Audit and Risk Committee comments on the assumptions and information within this report, in the context that Cabinet agrees that:
(1) Cabinet is asked to note the position of Treasury Management activity as at the end of March 2026.
(2) Cabinet is asked to recommend this report to Council and ask Council to:
a. Approve the actual 2025/26 prudential and treasury indicators as detailed in Appendix B.
b. Note the annual Treasury Management Review for 2025/26 (Appendix B).
REASONS FOR RECOMMENDATIONS: 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.
Minutes:
Audio recording – 2 hours 16 minutes 13 seconds
N.B. Councillor Paul Ward declared an interest in this item due to his employment and left the Chamber and did not return.
The Director – Resources presented the report entitled ‘Treasury Management End of Year Review 2025-26’ and advised that:
· This report detailed how the Council invested any surplus cash and provided an end of year picture. Overall, the balances were declining due to the planned capital spend and therefore there was less available to invest, but interest rates had stayed higher than expected.
· However, inflation was not coming down as quickly, therefore there were likely to be increased costs in some areas.
· The report detailed how investments were identified, including considering the security, liquidity (linked to cashflow) and yield of the investment.
· The detail of investments was included in the Appendix to the report.
N.B. Councillor Elizabeth Dennis returned to the Chamber at 21.49.
The following Members asked questions:
· Councillor Ruth Brown
· Independent Member John Cannon
In response to questions, the Director – Resources advised that:
· The short term, high interest investments from other authorities were offered to the Council as it was the best way for Council to get the funds they needed to balance their cash requirements.
· Investments can still be made in other authorities despite potential changes through Local Government Reorganisation. Any investments would be transferred to the new authority and it would be for the legacy authorities to decide how this repayment should be split.
· The referenced DMO investments were government investments.
Councillor Ruth Brown noted that it was positive to see investments moving away from organisations which did not meet the Environmental, Social and Governance requirements of the Council, following a motion passed at Full Council.
Councillor Vijaiya Poopalasingham, as Chair, proposed and Councillor Sarah Lucas seconded and, following a vote, it was:
RECOMMENDED TO CABINET: That Finance, Audit and Risk Committee comments on the assumptions and information within this report, in the context that Cabinet agrees that:
(1) Cabinet is asked to note the position of Treasury Management activity as at the end of March 2026.
(2) Cabinet is asked to recommend this report to Council and ask Council to:
a. Approve the actual 2025/26 prudential and treasury indicators as detailed in Appendix B.
b. Note the annual Treasury Management Review for 2025/26 (Appendix B).
REASONS FOR RECOMMENDATIONS: 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.