Decision details

The Cabinet had before it a report * from the Deputy Chief Executive (S151) presenting the Quarter 2 Treasury Management Report.

The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:

• In line with regulations, the mid-year treasury management report required a more in-depth and informative report to be presented to the decision makers about the treasury aspects of the Council’s finances.
• The continuation of the current policy and approval of the revised Capital Financing Requirement (CFR), Operational Boundaries and Authorised limits, which were included within paragraphs 5.4 and 5.5. 
• In summary, good investment returns had been achieved on the treasury investment due to the slower than expected fall in increased interest rates. However, the rates had begun to fall. The greater yield was also helped by the slippage on the capital programme enabling higher temporary investments to be made.
• An economic summary provided by the Council’s Treasury Advisors, (Link Group), a summary of the deposits at the end of the quarter and the yields that had been achieved.
• No additional borrowing had been required and although potentially up to £6m may be required to be sought from external sources before the end of the financial year, this was lower than originally assumed within the 2024/25 budget.
• Based on the lower Q2 forecast, the report recommended a reduction in the Capital Financing Requirement, leading to a reduction in the Authorised Limit and Operational Boundary for external borrowing.

RESOLVED that Cabinet recommend to Council that:

1. A continuation of the current policy outlined at paragraphs 4.0 – 4.5 be AGREED.
2. The changes to the Capital Financing Requirement, Operational Boundaries and Authorised Limits for the current financial year at paragraphs 5.4 – 5.5 be APPROVED.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Note: *Cllr S Keable left the meeting at 19:49pm

Reason for the decision: As stated in the report

Note: * Report previously circulated.