Purpose

The report provides the Executive with details of the capital and treasury management outturn for 2025/26 to comply with the reporting requirements of the Code of Practice for Treasury Management.  The report also seeks approval for the proposed methods of financing the General Fund capital programme and the inclusion of two additional schemes.

Actual capital expenditure on General Fund schemes in 2025/26 was £6,716,268 (£13.4 million in 2024/25) compared with the revised capital programme of £8,862,100.  Overall, the programme has been underspent by £2,145,832.  A detailed analysis of the variations is given in Appendix A to this report.

Total savings from individual projects of £108,971 were achieved, additional expenditure of £11,537 on others was incurred and a total of £2,048,398 will be carried forward into 2026/27.  Details of the various methods used to finance this expenditure are set out in this report.

Full details of Treasury Management investment and borrowing activity in 2025/26 are also set out in this report and is summarised below. This shows that there has been a decrease (improvement) in the Council’s net borrowing position.

31 March 2025

Actual

£’000

2025/26 Movement

£’000

31 March 2026

Actual

£’000

Total borrowing

61,836

(8,336)

53,500

Total investments

(17,503)

(4,244)

(21,747)

Net borrowing

44,333

(12,580)

31,753

Net interest received from investments in 2025/26 was £582,213 and net interest paid on borrowing for the HRA was £1,932,368.

The overall investment property portfolio decreased in value by £1,862,000 and contracted income was approximately £4,700,000.

During 2025/26, the Council complied with its legislative and regulatory requirements of the Prudential Code.

Decision

RESOLVED that the Executive:

(a)   approves that the General Fund capital programme for 2025/26 be financed as set out in this report;

(b)   agrees that the additional expenditure incurred, amounting to £11,537 be financed retrospectively from unallocated capital resources;

(c)   agrees to add £45,000 to the Capital Programme for Lighting Replacement at Fareham Innovation Centre to be funded from Solent Enterprise Zone retained business rates; and

(d)   agrees to add £125,000 to the Capital Programme for Depot Fuel Infrastructure Investment to be funded from additional revenue contributions to capital;

(e)   notes the treasury management activity for 2025/26.