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).