Agenda item

Report of the Executive Director of Resources and Governance

The Cabinet Member with the Resources Portfolio introduced the report (previously circulated) of the Executive Director of Resources and Governance providing important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow; treasury activity for 2024/25; and seeking approval of the Prudential Indicator results for 2024/25 in accordance with the Prudential Code.

It was reported that the financial year 2024/25 was yet another unprecedented year with regard to treasury management due to a number of issues including the continuing conflict in Ukraine; events in the Middle East; inflation taking time to recover; the cost of borrowing continuing to rise steadily throughout the early part of the year; and that although the returns for cash investments had increased to higher interest rates they still remained below the cost of borrowing. The Council had complied with its legislative and regulatory requirements.

The submitted report summarised the Councils external debt as of 31 March 2025 was £172.738m which is £19.860m more than the previous year, this increase relates to the progression of various capital schemes and the rise in cost of the schemes due to inflationary pressures.

RESOLVED - (a) That the outturn 2023/24 Prudential Indicators, as detailed within the submitted report and in Appendix 1 to the submitted report, be noted.

(b) That the Treasury Management Annual Report for 2023/24, as detailed in the submitted report, be noted.

(c) That the report be forwarded to Council, in order for the 2023/24 Prudential Indicators to be noted.

REASONS - (a) In order to comply with the Prudential Code for Capital Finance in Local Authorities.

(b) To inform Members of the Performance of the Treasury Management function.

(c) To comply with the requirements of the Local Government Act 2003.