The Finance and Performance Scrutiny Committee met on Monday 24 August 2026 to review the council's treasury management activities and sundry debts for the first quarter of the 2026/27 financial year. The committee noted the reports presented, with discussions focusing on the council's debt levels, interest rate forecasts, and the management of outstanding debts.

Treasury Management Quarter 1 2026/27

The committee received an update on the council's treasury management activities for the first quarter of the 2026/27 financial year. Ashley Wilson, Head of Finance, presented the report, which detailed the council's debt position, with £52,062,263 in Housing Revenue Account (HRA) debt and £30,681,416 in General Fund debt. The report highlighted an economic background where interest rates had increased significantly since 2021/22, with forecasts suggesting they would not decrease in the short term. Councillor P Williams suggested adding a dotted line to the interest rate graph to visually represent this projection.

Discussions also touched upon the council's borrowing activities, including long-term borrowing for capital expenditure. It was noted that some debt extends to 2042 for the HRA and 2051 for the General Fund. The report indicated that short-term borrowing is currently cheaper than long-term borrowing, which has influenced recent borrowing decisions. The committee was informed that the council's investment strategy prioritises safeguarding principal and interest, ensuring liquidity, and then achieving investment returns. The average amount invested in the first quarter was £2.2 million over an average period of five days, a decrease from previous years when more cash was available for longer-term investment. The committee agreed to note the report.

Sundry Debts 2026/27 Quarter 1

The committee also reviewed the position of sundry debts as of 30th June 2026. The total sundry debt stood at £3,198,173. The Key Performance Indicator (KPI) for debt over 90 days is set at 25% or less, but at the end of June 2026, this stood at 33.22%. This figure was adjusted for homelessness-related debts, instalment plans, and debts in dispute. Ashley Wilson explained that a significant portion of the debt over 90 days relates to homelessness bonds, which are part of a prevention scheme to help individuals access private rented accommodation. While efforts are made to recover these debts, legal action is generally not pursued to align with the council's Anti-Poverty Strategy.

Councillor P Williams raised a point about the report focusing on sundry debts and requested that future reports provide context by comparing these figures to the total council debt, including council tax and business rates. An action was noted to include this in future reports. There was also a discussion regarding a discrepancy in the reported number of invoices over 90 days, which Ashley Wilson agreed to investigate. The committee also discussed the £1.5 million in dispute and the potential for including information on the average time debts remain in dispute in future reports. The committee agreed to note the report.

Performance Management Framework 2026/27 - Quarter 1

The committee was presented with the performance dashboard for Quarter 1 of the 2026/27 financial year. This report provides a snapshot of the council's performance against various indicators. The dashboard includes RAG (Red, Amber, Green) status indicators to show performance against targets. The committee was informed that the format of these reports has been changed to a dashboard for the current financial year, incorporating comparisons with previous years' performance.

Finance & Performance Scrutiny Work Programme

The committee noted the current and future work programme for the Finance & Performance Scrutiny Committee, outlining planned reviews and monitoring activities up to 2027/28. This includes regular updates on treasury management, sundry debts, and performance management, as well as specific reviews of frontline services and financial outturns.