Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: June 16, 2025

Purpose: To update Cabinet on the treasury management activity for 2024/25 and performance against the 2024/25 Prudential Indicators

Content: The Cabinet considered a report of the Executive Director (Finance and Resources) presenting the Annual Treasury Management Report covering the treasury activity for the period from April 2024 to March 2025 and reviews performance against the Prudential Indicators for 2024/25.   Resolved:   1. That the Annual Treasury Management Report for 2024/25 and the outturn Prudential Indicators for 2024/25, be approved.   2. That it be noted that the financing of 2024/25 capital expenditure of £43.697M has been funded in accordance with the schedule set out in the submitted report.   3. That it be noted that Capital Financing and Treasury Management were carried out in accordance with the statutory requirements, good practice and in compliance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Prudential Code during 2024/25.   4. That the following in respect of the return on investment and borrowing, be noted:   ·         The loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk. ·         £5.648M of interest and income distributions for all investments were earned during 2024/25 at an average rate of 4.42%.  Also, the value of the externally managed funds increased by a net of £3.306M due to the changes in the unit price, giving a combined return of 7.01%. ·         The level of borrowing from the Public Works Loan Board (PWLB) (excluding debt relating to services transferred from Essex County Council on 1st April 1998) started the year at £347.3M and decreased to £339.3M (Housing Revenue Account (HRA): £72.0M, General Fund (GF): £267.3M) by the end of 2024/25. ·         The level of financing for ‘invest to save’ schemes decreased from £8.03M to £7.83M by the end of 2024/25.   Reasons for decisions:   The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2024/25 set out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.   Other Options:   There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them. The Treasury Management Policy aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.   Note: This is an Executive Function Not eligible for call-in Cabinet Member: Cllr Collins