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Issue - meetings

Treasury Management Outturn

 

 

Meeting: 24/09/2025 - Council (Item 43)

43 Treasury Management Outturn pdf icon PDF 878 KB

Purpose

To receive and discuss details of the Council’s Treasury management performance for the period 01 April 2024 to 31 March 2025.

 

Recommendation

That Council resolves to:

  1. Note the Council’s Treasury Management performance for the period 1 April 2024 to 31 March 2025.
  2. Approve the Treasury Management Outturn Report 2024/25.

Additional documents:

Minutes:

The purpose of the report was to receive and discuss details of the Council’s treasury management performance for the period 01 April 2024 to 31 March 2025.

 

The report was introduced by Councillor Patrick Coleman, Cabinet Member for Finance, who made the following points arising from consideration by the Audit and Governance Committee.

  • The Audit and Governance Committee commended the 2024–25 Treasury Management Outturn Report, confirming that activities aligned with the approved strategy, prudential indicators, and statutory guidance, with no breaches identified.
  • The Committee had identified the Council’s prudent approach to maintaining sufficient internal cash balances and emphasised the continued focus on investment security and liquidity amid market volatility.
  • It was acknowledged that the Council was in a stronger financial position than many other authorities, with resources carefully and wisely invested in pooled funds under sound professional advice.
  • The Audit and Governance Committee suggested that future reports include clearer information on long-term investment performance expectations.

 

The recommendations were seconded by Councillor Nigel Robbins. He noted that investment returns were higher than expected, at £1.6 million against a forecast of £1.2 million, due to delayed capital spending and stronger yields.

 

19:31 Councillor Tony Slater left the Chamber and did not return.

 

The Chair then moved to the debate.

 

A question was raised regarding the approval of any future borrowing by the Council and whether the decision would come before Council or Cabinet.  The Chief Accountant and Deputy S151 Officer would clarify the value which determined which body would action the request.

 

A Member observed that investment returns appeared broadly in line with service cost inflation, suggesting the Council had maintained the real value of its investments. The Deputy S151 Officer confirmed this was broadly correct, noting an average return of 4.6%, with overall costs rising by slightly less, resulting in a positive position overall.

 

Voting record:

For – 25, Against – 0, Abstain - 0

Councillors Tony Slater and David Fowles did not vote having left the meeting.

Meeting: 14/07/2025 - Audit and Governance Committee (Item 24)

24 Treasury Management Outturn pdf icon PDF 876 KB

Purpose

To receive and discuss details of the Council’s Treasury management performance for the period 01 April 2024 to 31 March 2025.

 

Recommendation

That Audit and Governance Committee resolves to:

  1. Consider the Council’s Treasury Management performance for the period 1 April 2024 to 31 March 2025.
  2. Agree any comments to be passed to full Council when considering this item.

 

Additional documents:

Minutes:

The purpose of the report was to receive and discuss details of the Council’s Treasury Management Performance for the period 1 April 2024 – 31 March 2025 and to agree any comments to be passed to Full Council when considering the item.

 

The Chair, Councillor Helene Mansilla, introduced the Statutory Annual Treasury Management Report and advised that the report reviewed how the Council has managed its finances, cash flow, borrowing, and investments for the financial year from 1 April 2024 to 31 March 2025. The Council's performance against the Treasury Management Strategy, which was agreed in February 2024, was highlighted alongside compliance with national financial regulations, including the Chartered Institute of Public Finance and Accountancy (CIPFA) Code and prudential indicators.

 

The Deputy Chief Executive and S151 Officer presented the report and informed the Committee that the Council budgeted for £1.2 million in investment income but achieved approximately £1.6 million, exceeding the budget by about £400,000. This surplus attributed to two factors:

 

1.    Interest rates had fallen more slowly than anticipated, keeping investment returns favourable.

2.    Increased Cash Balances: the Council’s cash balance was higher due to a slower than expected capital spending rate, providing more funds for investment.

 

The report demonstrated that the Council performed within the established Treasury Management Strategy. Quarterly updates and a mid-year report provided oversight and adjustments necessary for compliance with CIPFA standards.

A graph on page 39 in the agenda illustrated the income only return achieved by Cotswold District Council compared to other local authorities, indicating a relatively stable position in a fluctuating interest rate environment.

The Deputy Chief Executive and S151 Officer informed that no new borrowing was undertaken during the reporting period. 

The borrowing mentioned in the report related to a previous climate bond of £500,000, with repayment details that outlined short-term and long-term obligations. It was highlighted that the interest rate on the climate bond was approximately 2.15%. 

The current Public Works Loan Board (PWLB) rates indicated significantly higher rates for new borrowings at 6.14% for 50 year loans and around 4.84% for 10-year loans, contrasting sharply with historical low rates of around 1.5%.

Following the introduction of the report from The Deputy Chief Executive and S151 Officer Members of the Committee asked the following questions.

The Deputy Chief Executive and S151 Officer clarified that the Public works Loan Board rate set was in line with historical average rates and aimed to ensure the Council would not incur excessive costs should it need to borrow in the future.

The Committee expressed satisfaction with the higher-than-expected investment income, but it was pointed out that the overall investment value had decreased. The Committee questioned whether it was due to capital reallocations or the performance of the investment funds.

The Deputy Chief Executive and S151 Officer explained that the decrease was primarily attributed to the cash balance available for investments over the reporting period which was influenced by fluctuations in accounts receivable and payable and noted a reported reduction of approximately £75,000 in the  ...  view the full minutes text for item 24

 

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