Issue - meetings

To provide Members with the Annual Treasury Report 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management to ensure best practice is maintained (report of the Interim Director – Finance (S151) enclosed).

Consideration was given to the report of the Interim Director of Finance (S151 Officer) which provided Members with the Annual Treasury Report 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management to ensure best practice was maintained.

The Portfolio Holder for Finance presented the report.

Section 1 (page 108 of the agenda pack) - This Council was required to produce an annual treasury report of activities and the actual prudential and treasury indicators for 2024/25. All required treasury reports had been submitted to Governance and Audit throughout the financial year for review and scrutiny, including this report, as part of their delegated role.

Member training on Treasury Management had been undertaken during the financial year.

Section 2 – The tables on page 109 of the agenda pack showed the capital expenditure and financing for the year split between the Housing Revenue Account and General Fund. The combined budget was £22.2million and actual expenditure was £19.6million.

Section 3 – The tables on page 110  of the agenda pack showed that on 31 March 2025 the cumulative amount of unfinanced capital expenditure was £84.8million. Actual external borrowing was £67.5million so the Council’s level of internal borrowing was £17.3million.

Section 4 - The tables on pages 112 and 113 showed details of cash and investments totalling £38.2million and borrowing of £67.5million.

Section 5 – Provided details of the Council’s strategy for interest rates for 2024/25. The Bank of England Base Rate started the year at 5.25% and closed the year at 4.50%.

Section 6 - There was no new external borrowing undertaken during the financial year so this remained at £67.5million.

Section 7 – Investment Outturn for 2024/25 (Page 116 of the agenda pack)

·      Balance Sheet resources as at 31 March 2025 reduced from £40.8million to £40.5million

·      Investments achieved a combined rate of return of 5.23%.

·      The budget for interest payable and receivable for 2024/25 was £1.303million net expenditure and the actual was £358,000. This was an overall favourable variance of £945,000.

Section 8 – Provided a summary of the global economy from our external treasury advisors for information.

Section 9 – The table on page 118 of the agenda pack provided details of the Council’s non treasury investments.

DECISION:

That the Treasury Annual Report 2024/25 at Appendix 1 be received and approved, as required by the Local Government Act 2003 following scrutiny by the Governance and Audit Committee at their meeting on 10 July 2025.

To provide Members with the Annual Treasury Report 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management to ensure best practice is maintained (report of the Interim Director of Finance and Section 151 Officer enclosed).

Consideration was given to the report of the Interim Director of Finance (Section 151 Officer) which provided members with the Annual Treasury Report 2024/25 in accordance with the Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management to ensure best practice was being maintained.

The report was introduced by the Head of Finance Delivery – Technical and Corporate (PSPS) on behalf of the Interim Treasury Manager (PSPS). The Annual Treasury Management Review 2024/25 was at Appendix 1 which included the following areas information:

• Introduction
• The Council’s Capital Expenditure and Financing 2024/25
• The Council’s overall borrowing need;
• Treasury position as at 31 March 2025;
• The Strategy for 2024/25;
• Borrowing Outturn;
• Investment Outturn;
• The Economy and Interest Rates; and
• Other issues, including:
  • IFRS 9 fair value of investments;
  • Non-treasury investments; and
  • Changes in risk appetite.

Members considered the report and made the following comments:

• Members queried the shift in investment from banks to local authorities.
  • The Head of Finance Delivery – Technical and Corporate (PSPS) explained that local authorities offered attractive short-term rates, particularly at the end of the financial year if borrowing was required, and that these were considered secure government-backed investments.

• Members welcomed the Council’s strong financial position and praised the performance of the Finance team and Portfolio Holder. The Committee noted the favourable variance of £945,783 and recommended the report for approval by Council.

AGREED:

That following scrutiny of the Treasury Annual Report 2024/25, the comments of the Governance and Audit Committee be noted for consideration by Council at their meeting on 23 July 2025 when the document was to be considered for approval.