Agenda item

This report provides an update on treasury management activities for the first half of the financial year 2023-24.

Members are asked to note that the report was noted by Cabinet on 10 February 2025 and has been referred on to Council for consideration in compliance with CIPFAs Code of Practice on Treasury Management.

The Mayor then invited Councillor Mili Patel, Deputy Leader and Cabinet Member for Finance & Resources, to introduce the report from the Corporate Director of Finance & Resources updating members on Treasury Management activity for the first half of the 2024-25 financial year. Members noted that the report had also been considered and agreed by the Audit and Standards Advisory Committee on 4 December 2024 and Cabinet on 10 February 2025 who had agreed to refer it on to Council for consideration in compliance with the CIPFA Code of Practice on Treasury Management.

In introducing the report, Councillor Mili Patel 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 priorities, 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, Councillor Mili Patel advised that 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, it was reported 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.

In outlining the importance of the Council’s Treasury Management function in underpinning all Borough Plan priorities and in ensuring the Council was able to continue meeting its financial obligations, including those associated with the affordability and delivery of the Capital Programme, the opportunity was taken to thank officers for their support in providing clear direction and delivery of the Council’s Treasury Management activity.  In commending the report to Council, Councillor Mili Patel ended by highlighting how this was again felt to demonstrate the prudent approach adopted in terms of the financial management required to support delivery of the Council’s wider ambitions and priorities.

The Mayor thanked Councillor Mili Patel for introducing the report and as no other members had indicated they wished to speak, and Councillor Mili Patel advised she did not wish to exercise any right of reply, he then moved to put the recommendations to the vote, which were unanimously declared CARRIED

Council therefore RESOLVED to note the 2024-25 Mid-Year Treasury report detailing overall financial performance up to Quarter Two, which had been fully compliant with the Council’s Treasury Prudential Indicators set as part of the annual strategy.