Purpose

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

Content

1.   
That due to the new accounting requirements for ‘Other Long
Term Liabilities’, the revised 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 of the
Cabinet report), an increase of £13.5 million be
approved.

2.   
That the revised Prudential and Treasury Management Indicators as
set out in Appendix 2 of the Cabinet report for 2025-2026 to
2027-2028 be approved.

3.   
That it be noted, 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 was
under these overall limits. The nature of the assets generating
these liabilities haven’t changed, it was purely how the
liabilities need to be calculated and accounted for under IFRS 16
requirements.

4.   
That it be noted, 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.

5.   
That it be noted, the revenue implications of treasury management
activities in 2025-2026 for the General Fund was currently forecast
to be within budget. However, there were early indicators that
suggest there may be pressure on the HRA budget. This will continue
to be monitored and updates provided in future reports.