Issue - meetings

The then Chairman of the Corporate Policy and Resources Committee introduced the annual treasury management report for 2024/25 recommended by the Committee.  The report provided an update on progress against the Treasury Management Strategy approved by Council in March 2024 for 2024/25 financial year and was a requirement of compliance with the CIPFA Code of Practice.

The report contents were summarised to the Chamber with Members noting interest rates during the period had been above those expected when the original treasury management strategy had been written. Therefore, the Council has benefited from increased interest rates on its investments, generating £1.166m during 2024/25. This had overachieved the budget by £515k.

By closely monitoring cashflow and the capital programme underspending in year, external borrowing had been kept down where possible. This has meant the exposure to increased interest costs payable had been minimised resulting in a spend on interest payable of £760k.

Members noted some existing borrowing would need to be refinanced in the short term, but borrowing would be taken as late as possible to take advantage of projected interest rate reductions.

The Chairman of the Committee was pleased to confirm that there had been no breaches of the prudential indicators during 2024/25.

The recommendations were moved.  In response to a question regarding whether there were any ethical rules in place to safeguard the Council from investing with high-risk vendors or high carbon output firms, for example, the Section 151 Officer outlined the Treasury Management Investment criteria starting with security, liquidity, yield. Environmental, social and governmental considerations were then considered. More green investments were being offered but often at a slightly lower yield than a standard investment.

However, if a green investment was on the counterparty list approved by Council, then an investment was permissible and where rates were only very marginally different, the Council would always try and move towards green investments.

With the recommendation duly seconded on being put to the vote it was: -

RESOLVED that the Annual Treasury Management Report and actual Prudential Indicators 2024/25 be approved.