Decision

The Executive has decided to approve the financing of the General Fund capital programme for 2024/25 and comply with treasury management reporting requirements.

Analysis

outcome: The Executive approved the financing of the General Fund capital programme for 2024/25 as outlined in the report, agreed to finance additional expenditure retrospectively from unallocated capital resources, and noted the treasury management activity for the year.

summary: The decision at stake is the approval of the proposed methods of financing the General Fund capital programme for 2024/25 and compliance with the reporting requirements of the Code of Practice for Treasury Management.

topline: The Executive has decided to approve the financing of the General Fund capital programme for 2024/25 and comply with treasury management reporting requirements.

reason_contentious: This issue is not particularly contentious as it mainly involves financial management and compliance with regulations.

affected_stakeholders: ["Executive", "Council members", "General public"]

contentiousness_score: 2

political_party_relevance: There are no mentions or implications of political parties or political influence on the decision.

URL: https://moderngov.fareham.gov.uk/ieDecisionDetails.aspx?ID=2667

Decision Maker: Executive

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose: This report provides the Executive with details of the capital and treasury management outturn for 2024/25 to comply with the reporting requirements of the Code of Practice for Treasury Management. The report also seeks approval for the proposed methods of financing the General Fund capital programme.   Executive summary: Actual capital expenditure on General Fund schemes in 2024/25 was £13,370,221 (£31.2 million in 2023/24) compared with the revised capital programme of £15,511,300. Overall the programme has been underspent by £2,141,079. A detailed analysis of the variations is given in Appendix A to this report.   Total savings from individual projects of £263,245 were achieved, additional expenditure of £506,335 on others was incurred and a total of £2,384,169 will be carried forward into 2025/26. Details of the various methods used to finance this expenditure are set out in this report.   Full details of Treasury Management investment and borrowing activity in 2024/25 are also set out in this report and is summarised below. This shows that there has been a slight decrease in the Council’s net borrowing position.     31 March 2024 Actual £’000 2024/25 Movement £’000 31 March 2025 Actual £’000 Total borrowing 64,589 (2,753) 61,836 Total investments (13,588) (3,915) (17,503) Net borrowing 51,001 (6,668) 44,333   Net interest received from investments in 2024/25 was £57,388 and net interest paid on borrowing for the HRA was £2,011,719 The overall investment property portfolio increased in value by £103,000 and contracted income was approximately £4,890,000. During 2024/25, the Council complied with its legislative and regulatory requirements of the Prudential Code.

Content: This report provides the Executive with details of the capital and treasury management outturn for 2024/25 to comply with the reporting requirements of the Code of Practice for Treasury Management. The report also seeks approval for the proposed methods of financing the General Fund capital programme.   Executive summary: Actual capital expenditure on General Fund schemes in 2024/25 was £13,370,221 (£31.2 million in 2023/24) compared with the revised capital programme of £15,511,300. Overall the programme has been underspent by £2,141,079. A detailed analysis of the variations is given in Appendix A to this report.   Total savings from individual projects of £263,245 were achieved, additional expenditure of £506,335 on others was incurred and a total of £2,384,169 will be carried forward into 2025/26. Details of the various methods used to finance this expenditure are set out in this report.   Full details of Treasury Management investment and borrowing activity in 2024/25 are also set out in this report and is summarised below. This shows that there has been a slight decrease in the Council’s net borrowing position.     31 March 2024 Actual £’000 2024/25 Movement £’000 31 March 2025 Actual £’000 Total borrowing 64,589 (2,753) 61,836 Total investments (13,588) (3,915) (17,503) Net borrowing 51,001 (6,668) 44,333   Net interest received from investments in 2024/25 was £57,388 and net interest paid on borrowing for the HRA was £2,011,719 The overall investment property portfolio increased in value by £103,000 and contracted income was approximately £4,890,000. During 2024/25, the Council complied with its legislative and regulatory requirements of the Prudential Code. RESOLVED that the Executive:-   (a)  approves that the General Fund capital programme for 2024/25 be financed as set out in this report;   (b)  agrees that the additional expenditure incurred, amounting to £506,335 be financed retrospectively from unallocated capital resources; and   (c)  notes the treasury management activity for 2024/25.

Date of Decision: July 7, 2025