Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: November 28, 2024

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

Content: 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).