Issue - meetings

To consider the report for information

To accept the report and note the information

A report was submitted by the Investment Manager reporting that the Treasury Management Strategy for the year 2026/27 had been approved at the Full Council meeting in March 2026. It was noted that the strategy required the Investment Manager to report on treasury management prudential indicators every quarter with a review of the full financial year to also be submitted to the Committee when timely.

It was explained that the report before the committee provided an update on the period up to 31.12.2025.

It was reported that the period had been stable with the Council having invested money and generated significant interest income; the position on 31 December 2025 was very strong with the Council in a net investment position due to the high level of investments and operational capital, which also included Pension Fund funding. It was noted that since 31 March 2025 it had been decided to repay a historical loan of £16.2m from the bank due to favourable terms and the Strategy enabled the Council to reduce net borrowing costs (despite lost investment income) and reduce the Council's overall treasury risk.

Reference was made to the Prudential Indicators with particular emphasis on the Commitments Benchmark. It was explained that the Council expected to continue to borrow above its Benchmark up to 2026, because the Council held reserve funds with the cash flow, so far, lower than the projections made when the money had been borrowed. By 2027, it was projected there would be a very small amount of borrowing at the end of the financial year and therefore it would be possible to finance this through short-term borrowing and there would be no need for long-term borrowing based on current projections.

It was noted that all activities fully complied with the CIPFA code of practice.

The members expressed their thanks for the report.

RESOLVED

To accept the report and note the information