Issue - meetings

To receive the Treasury Management 2024/25 update report and the 2025/26 Treasury Management Strategy.

The Group Accountant provided the Committee with an overview of the Treasury Management Update Report 2024/25 and the Treasury Management Strategy 2025/26 recommended to be adopted for 2025/26, which the Committee were required to consider before it was to be presented to Full Council.

Members heard that the strategy for 2024/25 and previous years had been to limit investments in third parties, which reduced the Council’s exposure to counterparty risk, and where possible and appropriate to take advantage of lowest interest rates for borrowing. The Committee were advised that maintaining high levels of very cheap temporary financing had generated surplus treasury management returns of more than £30m since 2015/16 which had reduced the impact of Government cuts to the Council’s grants and therefore helped to protect front line services. The Group Accountant informed Members that the Council’s Medium Term Financial Strategy for 2024/25 and the Cabinet’s proposals issued for consultation in January 2025 for 2025/26 to 2028/29 included an allowance for interest rates based on advice from the Council’s independent treasury management advisors which ensured that the Council’s budget in relation to Treasury Management was as robust as possible. The Council would continue to receive regular advice from independent expert advisors specialising in all aspects of local government treasury management and would act in accordance with the advice received. The Committee were asked to note that the Council had an excellent track record of complying with all the treasury management and prudential indicators and limits agreed by Council and were operating well within the overall approved credit ceiling.

The Group Accountant advised the Committee that the strategy for 2024/25 remains consistent with that outlined in the 2024/25 Treasury Strategy which was agreed for approval at Full Council on 29 February 2024 and by the Audit Committee on 31 January 2024. The Strategy was also a continuation of that used in recent years which has provided considerable benefits to the Council. Members heard that a large part of the Council’s total existing borrowing and planned further borrowings related to funding projects which delivered important and significant housing and regeneration benefits as well as generating some income. These were budgeted to generate returns in excess of the annual loan repayment charges and other operating costs.

Following the presentation, Members extended their thanks to the Link Group for the training and ongoing support provided to the committee and expressed appreciation to the officers involved in developing the strategies that enable the council to generate revenue through investments, which in turn benefit local residents. The Committee sought clarification on whether capital investment projects must demonstrate a social benefit rather than being solely for financial return, and were advised by the Group Accountant that this was the case, and that the majority of increased spending was directed toward initiatives that deliver tangible benefits within the borough. The Group Accountant cited NuPlace as an example, which focused on providing social housing and protecting green spaces. The Committee highlighted the importance of understanding the relationship between borrowing  ...  view the full minutes text for item 28