Decision Maker: Council

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 16, 2025

Purpose: To approve the Treasury Management - Annual Report 2024-2025 and Activity Monitoring Quarter One 2025-2026.

Content: 1.    That due to the new accounting requirements for ‘Other Long Term Liabilities’, the revised borrowing limit for 2025-2026, as required under Section 3(1) of the Local Government Act 2003, to be set at £1,263.2 million (Reference PI 3, Appendix 2 of the Cabinet report), an increase of £13.5 million be approved. 2.    That the revised Prudential and Treasury Management Indicators as set out in Appendix 2 of the Cabinet report for 2025-2026 to 2027-2028 be approved. 3.    That it be noted, the Council operated within the overall approved Prudential and Treasury Management Indicators, and also within the requirements set out in the Council’s Treasury Management Policy Statement during 2024-2025. However, due to the implementation of the new accounting requirements, International Financial Reporting Standard (IFRS) 16, the authorised limit and operational boundary for ‘Other Long Term Liabilities’ was exceeded. It should be noted that when looking at the total authorised limit and operational boundary (e.g. borrowing and other long term liabilities together), the actual and forecast total was under these overall limits. The nature of the assets generating these liabilities haven’t changed, it was purely how the liabilities need to be calculated and accounted for under IFRS 16 requirements. 4.    That it be noted, revenue underspends of £3.6 million for the General Fund, due to the receipt of one-off income, and £1.0 million for the Housing Revenue Account (HRA) were generated from treasury management activities in 2024-2025. 5.    That it be noted, the revenue implications of treasury management activities in 2025-2026 for the General Fund was currently forecast to be within budget. However, there were early indicators that suggest there may be pressure on the HRA budget. This will continue to be monitored and updates provided in future reports.