Decision Maker: Executive

Outcome: Recommendations Approved (subject to call-in)

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: November 20, 2025

Purpose: To demonstrate that the Council’s treasury function has effectively managed the Council’s debt and cash balances to support the funding of the delivery of the Council’s key priorities.

Content: RESOLVED that the Executive was asked to support the Treasury Management Mid-Year Report 2025-26 and recommend it to Council and note that:   1)     prudential indicators were 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 was a requirement to report progress against these,   2)     that all approved indicators set out in the Treasury Management Strategy had been adhered to,   3)     As at the end of September 2025, the forecast for the total external general fund debt is £138m at March ’26, which reduced to £127m after taking into account cash balances (net indebtedness) and was considerably lower than the estimate set out in the strategy of £199m, reducing interest 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 is largely funded from investment income and income received from commercial, regeneration and invest to save schemes and   5)     The forecast general fund capital financing requirement (CFR) at 31st March 2026 was significantly lower than the estimate set out in the strategy at £386m from £429m. This will be achieved through reducing in year capital spending and maintaining significant levels of debt repayment (MRP).