Purpose

The Council is required through regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2025/26. This report meets the requirements of both the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

Decision

The Cabinet has considered an overview of the council's actual treasury management performance and financial stewardship for the 2025/26 fiscal year, as required under the Local Government Act 2003, and has agreed to recommend that the Council Meeting:-

(1)  Note the Treasury Management Annual Outturn Report for the 2025/26 financial year.

(2) Note that all treasury management activity during the year was carried out in full compliance with the council's approved Treasury Management Strategy, statutory guidelines, and local borrowing limits, with a continuous focus on debt cost minimisation and risk mitigation.

(3)  Note the performance achieved on the council's investment portfolio, which successfully met its budgeted outturn target of 4.10% while prioritising safety and liquidity through the primary use of Money Market Funds; and

(4) Approve the mid-year amendment to the Minimum Revenue Provision (MRP) Policy, which ensures that statutory capital charges for assets brought onto the balance sheet under the new IFRS 16 Leases standard are accurately adjusted to reflect the transitional value of the asset over the lifetime of the lease.

Alternative options considered

None.