URL: https://democracy.northdevon.gov.uk/ieDecisionDetails.aspx?ID=4389

Decision Maker: Strategy and Resources Committee, Council

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Committee considered a report by the Head of Governance (circulated previously) regarding the Mid Year Treasury Management report 2025/26.   The Head of Governance highlighted the following:   The capital programme had increased by circa £2.5m since the original strategy was agreed, but this had been offset by capital grants and  reserves contributions resulting in a limited impact on the  underlying need to borrow. The forecast borrowing remained at £22m. The current position for borrowing as at 30 September 2025 was £12m.  In October 2025, there was a requirement for further borrowing of £2m from the Public Works Loan Board which would increase the current total borrowing, excluding finance leases, to £14m.  There may be a requirement to borrow a further £8m by the end of the financial year depending on the variations of the capital programme and cash flow. The Council held £6.45m of investments as at 30 September 2025 (£1.2m at 31 March 2025) and the investment portfolio yield for the first six months of the year was 4% against the benchmark 7 day average SONIA rate of 4.20%. The Council’s budgeted investment return for 2025/26 was £400,000. Investment interest of £189,000 was earned in the half-year period.   In response to questions from the Committee, the Head of Governance advised the following:   The increase in capital expenditure for the Environmental Enhancement service reflected the variations to the capital programme which had been included within the Financial Management report for Quarter 2 2025-26. In terms of borrowing rates, the Council was waiting to see the impact from the Government’s budget in November 2025.  The interest rate forecasts were detailed in Appendix A, paragraph 3.2. .The Council’s borrowing strategy was to undertake short term borrowing to wait for the interest rates to decrease and then fix for a longer period.   In response to questions from the Committee, the Director of Resources and Deputy Chief Executive advised the following:   The majority of capital expenditure for the Environmental Enhancement Service last year had been as a result of the change of infrastructure and installation of the new baler within the Waste and Recycling service.   RECOMMENDED:   (a)  That the changes to the prudential indicators be approved. (b)  That the report and the treasury activity be noted.  

Date of Decision: November 3, 2025