Issue - meetings

This report updates Members on Treasury activity for the first half of the financial year 2024/25 (Quarters one and two). The Local Government Act 2003 and the Local Authorities (Capital Financing and Accounting) Regulations 2003 require that regular reports be submitted to the relevant Council Committee detailing the Council’s treasury management activities.

Members are asked to note that Members are asked to note that the report has also been subject to consideration and review by the Audit & Standards Advisory Committee on Wednesday 4 December 2024.

Cabinet RESOLVED

(1)    To note the 2024-25 Mid-Year Treasury report and approve its referral on to Full Council.

(2)    To note that the Council had been fully compliant with the prudential indicators set as part of the annual strategy.

Eligible for call-in: No (report and recommendations referred to Council)

Councillor Mili Patel (as Deputy Leader and Cabinet Member for Finance & Resources) presented a report from the Corporate Director Finance & Resources updating on Treasury Management activity for the first half of the financial year 2024-25 which included the Council’s investment and borrowing activities and strategy.

In introducing the report, members were advised that as part of the Council’s ongoing commitment to financial transparency, the report included details on the Council’s borrowing requirement, cash investment balances and compliance with the Prudential Indicators enabling Brent to meet its financial obligations.  Members were reminded that as part of the approach outlined in terms of managing Treasury Management activity to support the Council’s overall financial position it was only possible to borrow for capital investment and not to fund operational day-to-day expenditure for example to offset the increasing financial pressures being experienced within the revenue budget with the Borrowing Requirement reflecting the Council’s capital ambitions for both the General Fund and the Housing Revenue Account. As a result of the Council’s careful financial stewardship and compliance with Prudential Indicators the Council’s borrowing balance (as at September 2024) was £791.9m with the decrease in this balance, along with that held in cash investments, reflecting the ongoing approach towards the repayment of loans and investment in the Council’s capital programme in place of additional borrowing.  By prioritising existing cash investments, the Council had also been able to generate an interest income of £3.6m with the Council’s borrowing strategy therefore recognised as continuing to address the key issue of affordability without compromising the longer-term stability of the debt portfolio.

Members welcomed the report and prudent approach being delivered in terms of the Council’s Treasury Management activity to support delivery of the Council’s wider ambitions and priorities given the challenging economic context under which the Treasury Management Strategy was having to be delivered.

Having noted the assurance provided that the Council had fully complied with the Prudential Indicators set as part of the annual strategy for 2024 – 25 and thanked officers for their support in delivery of the Council’s Treasury Management strategy, Cabinet RESOLVED to note the 2024-25 Mid-Year Treasury report and approve it being referred on to Council, in compliance with CIPFA’s Treasury Management Code of Practice.