Issue - meetings

The report gives details of performance against the Council’s Treasury Management Strategy for the first three months of 2025/26.

Cllr Mark Elliott, Cabinet Member for Resources, introduced the item, moved the officer recommendation and made the following points:

•   The report describes a positive financial performance.

•   The operational investment returns slightly exceeded the benchmark rate.

•   Interest and capital financing costs are forecast to be £175k under budget, offering relief to the revenue budget.

•   The upcoming “Fair Funding Review” by central government may negatively impact Bath & North East Somerset, making budget savings especially valuable.

•   Borrowing increased by £3.5 million, totalling just under £280 million.  This is standard practice for funding capital projects and is not unusual or excessive.

•   The Capital Financing Requirement is forecast at £441.8 million, representing total planned capital scheme funding needs.  Actual borrowing remains well below this figure due to prudent financial management.

·  Cllr Elliott commended officers for effectively managing cash, investments and borrowing and prioritising use of reserves before taking on new debt.  Performance indicators show that the council is within limits on all seven key Treasury Management Indicators.

Cllr Joel Hirst seconded the motion.  He stated that the report shows that the Council has control over borrowing and takes an excellent approach to investments.  B&NES has been consistent at balancing the budget and managing finances well, which means that it is better able to deliver for residents.

RESOLVED (unanimously):

(1)  To note the Treasury Management Report to 30^th June 2025, prepared in accordance with the CIPFA Treasury Code of Practice.

(2)  To note the Treasury Management Indicators to 30^th June 2025.