Issue - meetings

The Leader of the Council presented the report on behalf of the Executive Member for Financial Sustainability. Members heard that the mid?year Treasury Management Review for 2025/26 reported a slight rise in the 10?year gilt rate, influencing borrowing costs. External borrowing reduced to £61.5m, whilst investments fell to £29.4m, increasing net borrowing by £1.7m due to capital programme demands. Most borrowing remained short?term in anticipation of future refinancing at lower rates. Since the report was drafted, gilt and base rates had begun to ease. It was noted that the Council completed its withdrawal from the Hermes property fund, reducing property investments to £2.6m.

The Leader of the Council proposed the recommendations as set out in the report. The Executive Member for Environmental Sustainability seconded the proposal.

In response to a Member question in relation to whether there was a clear point at which the Council should stop relying on short?term loans, or whether it was safe to continue monitoring the market and wait for conditions to improve, officers advised that rates were monitored daily. It was noted that the Council held two £25?million Public Works Loan Board (PWLB) loans due for repayment in June and September 2026 and that Officers were working with treasury advisers to determine the best refinancing options and timing.

The motion to support the recommendation, having been proposed and seconded, was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that (A) Members examined and commented on the Mid-Year Treasury Management Review and Prudential Indicators for 2025/26 and recommended its approval to Council.

The Director for Finance, Performance and Risk introduced the report, the mid-year review against the Treasury Strategy which was agreed by Council as part of the Budget papers in February/March 2025.

The Chair thanked the Director for Finance, Performance and Risk for the report.

There were no comments or questions from the Committee.

It was moved by Councillor Deering and seconded by Councillor Nicholls that that the recommendations, as detailed, be approved.

After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that Members examine and comment on the Mid-Year Treasury Management Review and Prudential Indicators for 2025/26.