Purpose

To receive an update on the Council's Treasury
Management strategy.

Decision

RESOLVED
that the Executive supported the Treasury Management
Mid-Year Report 2024-25, recommended it to Council and noted
that:
 

1)   
prudential indicators are set to provide guidelines
to work within in accordance with the expectations set at the
beginning of the year in the treasury management strategy, and it
is a requirement to report progress against these.
 

2)   
that all approved indicators set out in the Treasury
Management Strategy have been adhered to; with the exceptions
of;
• Capital
financing requirement – HRA.
• Ratio of
financing costs to net revenue stream - HRA
 

3)   
As at the end of September 2024, the forecast for
the total external general fund debt is £118m at March’25, which reduces to £108m
after taking into account cash balances (net indebtedness) and is
considerably lower than the estimate set out in the strategy of
£171m, reducing interests costs in the current economic
climate.
 

4)   
An improved position for the ratio of financing
costs to net revenue stream – GF prudential indicator from
the forecast when the strategy was set. This means the overall cost
of capital was mostly funded from investment income and income
received from commercial, regeneration and invest to save
schemes.
 

5)   
The forecast general fund capital financing
requirement (CFR) at 31st March 2025 was
significantly lower than the estimate set out in the strategy at
£392m from £434m. This will be achieved through
reducing in year capital spending and maintaining significant
levels of debt repayment (MRP).