Purpose

To update Cabinet on the treasury management
activity for 2024/25 and performance against the 2024/25 Prudential
Indicators

Content

The Cabinet considered a report
of the Executive Director (Finance and Resources) presenting the
Annual Treasury Management Report covering the treasury activity
for the period from April 2024 to March 2025 and reviews
performance against the Prudential Indicators for
2024/25.
 
Resolved:
 
1. That the Annual Treasury
Management Report for 2024/25 and the outturn Prudential Indicators
for 2024/25, be approved.
 
2. That it be noted that the
financing of 2024/25 capital expenditure of £43.697M has been
funded in accordance with the schedule set out in the submitted
report.
 
3. That it be noted that
Capital Financing and Treasury Management were carried out in
accordance with the statutory requirements, good practice and in
compliance with the CIPFA (The Chartered Institute of Public
Finance and Accountancy) Prudential Code during 2024/25.
 
4. That the following in
respect of the return on investment and borrowing, be
noted:
 

·        
The loan and investment portfolios were actively
managed to minimise cost and maximise interest earned, whilst
maintaining a low level of risk.

·        
£5.648M of interest and income distributions
for all investments were earned during 2024/25 at an average rate
of 4.42%.  Also, the value of the
externally managed funds increased by a net of £3.306M due to
the changes in the unit price, giving a combined return of
7.01%.

·        
The level of borrowing from the Public Works Loan
Board (PWLB) (excluding debt relating to services transferred from
Essex County Council on 1st April 1998) started the year
at £347.3M and decreased to £339.3M (Housing Revenue
Account (HRA): £72.0M, General Fund (GF): £267.3M) by
the end of 2024/25.

·        
The level of financing for ‘invest to
save’ schemes decreased from £8.03M to £7.83M by
the end of 2024/25.
 
Reasons for
decisions:
 
The CIPFA Code of Practice on
Treasury Management recommends that Local Authorities should submit
reports regularly. The Treasury Management Policy Statement for
2024/25 set out that reports would be submitted to Cabinet
quarterly on the activities of the treasury management
operation.
 
Other Options:
 
There are many options
available for the operation of the Treasury Management function,
with varying degrees of risk associated with them. The Treasury
Management Policy aims to effectively control risk to within a
prudent level, whilst providing optimum performance consistent with
that level of risk.
 
Note: This is an Executive
Function
Not eligible for
call-in
Cabinet Member: Cllr
Collins