3 Treasury Management Half Year Monitoring Report 2024/25 PDF 254 KB
A report providing an update to Cabinet on the treasury management activities for 2024/25 as at quarter 2.
Cabinet Portfolio Holder – Councillor Peter Butlin
Additional documents:
Minutes:
Councillor Peter Butlin, Portfolio Holder for Finance and Property, introduced this report noting the excellent work with regard to investments which had generated income to offset costs. He highlighted that interest rates had remained stable through most of the first half of 2024/25 leading to the interest income at quarter 2 on treasury investments being £8.8m against the annual budget of £2.5m. This was helping offset the service overspends highlighted in the previous report but with the recent decrease in interest rates, and a rising DSG overspend, future reports would see this rate of return reduce. External borrowing remained unchanged but Councillor Butlin considered that if the situation regarding the statutory override was not addressed, further borrowing would be necessary.
In response to a comment by Councillor Andy Crump regarding interest rates, Councillor Butlin stated that interest rates had fallen by 0.25% and he did not feel there was likely to be more significant movement but the team were doing an excellent job to maximise the Council’s investments.
Resolved:
That Cabinet notes the update on Treasury Management activity and performance in respect of the first two quarters of the 2024/25 financial year.