Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 9, 2025

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.