Purpose

To approve the Treasury Management - Annual
Report 2024-2025 and Activity Monitoring Quarter One
2025-2026.

Content

That Council be recommended to approve:
1.   
That due to new accounting requirements for ‘Other Long Term
Liabilities’, the revised authorised borrowing limit for
2025-2026, as required under Section 3(1) of the Local Government
Act 2003, to be set at £1,263.2 million (Reference PI 3,
Appendix 2 to the report), an increase of £13.5 million.

 
2.   
The revised Prudential and Treasury Management Indicators as set
out in Appendix 2 to the report for 2025-2026 to 2027-2028.
 
That Council be recommended to note:
1.   
That the Council operated within the overall approved Prudential
and Treasury Management Indicators, and also within the
requirements set out in the Council’s Treasury Management
Policy Statement during 2024-2025. 
However, due to the implementation of the new accounting
requirements, International Financial Reporting Standard (IFRS) 16,
the authorised limit and operational boundary for ‘Other Long
Term Liabilities’ was exceeded. 
It should be noted that when looking at the total authorised limit
and operational boundary (e.g. borrowing and other long term
liabilities together), the actual and forecast total is under these
overall limits.  The nature of the
assets generating these liabilities haven’t changed, it is purely how the
liabilities need to be calculated and accounted for under IFRS 16
requirements.
 
2.   
That revenue underspends of £3.6 million for the General
Fund, due to the receipt of one-off income, and £1.0 million
for the Housing Revenue Account (HRA) were generated from treasury
management activities in 2024-2025.
 
3.   
That the revenue implications of treasury management activities in
2025-2026 for the General Fund is currently forecast to be within
budget.  However, there are early
indicators that suggest there may be pressure on the HRA
budget.  This would continue to be
monitored and updates provided in future reports.