Agenda item

This report presents the outturn for the Council's Treasury Management activities for 2025/26 updating Members on both the borrowing and investment decisions and Council’s Treasury Management performance.

Cabinet RESOLVED:

(1)       To note the overall financial performance for 2025 - 26, as set out within the report.

(2)       To approve submission of the report to Full Council for approval in accordance with the Chartered Institute of Public Finance and Accountancy's Treasury Management in the Public Services: Code of Practice.

Eligible for call-in: No (report referred to Council for final approval)

Councillor Grahl (as Deputy Leader and Cabinet Member for Finance & Resources) introduced a report from the Corporate Director Finance & Resources presenting the outturn for the Council’s Treasury Management activities 2025-26, in accordance with the Local Authorities (Capital Financing and Accounting) Regulations 2003.

In presenting the report, Councillor Grahl began by reminding members of the importance of effective treasury management in delivery of the Council’s priorities as a means of enabling continued to invest in Brent undertaken in a financially responsible way.  Highlighting the ongoing challenges in terms of the wider economic background and context in relation to the current outturn position which included continuing economic volatility and challenges arising as a result of ongoing global geo-political tensions, members were advised of the approach being taken in seeking to manage the Council’s finances as responsibly as possible and in accordance with agreed borrowing limits and the Treasury Management Strategy and Prudential Indicators.  In recognising the importance of the Treasury Management function in managing and planning for the level of funding required to support the Council’s activities, services and affordability of the capital programme members noted that the activity looked to optimise the effect of borrowing costs and investment income whilst managing the associated risks enabling ongoing investment in key priorities such as the delivery of new and affordable housing, SEND provision, local infrastructure and other assets designed to deliver long term benefit for residents across the borough.  During 2025-26 it was noted this had enabled the Council to deliver £209.6m of capital expenditure based on a prudent approach towards the financing of that investment using a “little and often” approach to borrowing, allowing the Council more flexibility in being able to respond to changes in interest rates, manage costs and reduce exposure to risk.  This balance was recognised as important given the ambition to continue investing in homes, schools and infrastructure whilst also making sure the decisions being taken were affordable and sustainable.

Highlighting the practical benefits and outcomes of this approach for residents and on a wider basis in reducing reliance on the private sector and helping to manage costs moving forward, the opportunity was also taken to thank officers for their professionalism and diligence in support of the work being undertaken to deliver the Council’s ambitions and management of the Council’s Treasury Management activity.

In commending what members felt to be Brent’s prudent financial stewardship the commitment made in seeking to ensure the Council continued to borrow in as sustainable a way as possible to deliver on key infrastructure projects and ambition without compromising the longer term stability of the debt portfolio and to ensure its investment portfolio remained as diversified as possible was also recognised given the continued nature of pressures faced.

Having considered the report Cabinet therefore RESOLVED:

(1)       To note the overall financial performance for 2025 - 26, as set out within the report.

(2)       To approve submission of the report to Full Council for approval in accordance with the Chartered Institute of Public Finance and Accountancy's Treasury Management in the Public Services: Code of Practice.