URL: https://democracy.bathnes.gov.uk/ieDecisionDetails.aspx?ID=2462

Decision Maker: Cabinet

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose: This report gives details of performance against the Council’s Treasury Management Strategy Statement 2025/26..

Content: That Cabinet notes:   1)  The Treasury Management Outturn 2025/26 Report, prepared in accordance with the CIPFA Treasury Code of Practice; and   2)  The Treasury Management Prudential Indicators to 31st March 2026. The Council approved the Treasury Management Strategy 2025/26 at its meeting on 25 February 2025. The Council ended the year with total borrowing of £288.977m and total investments of £31.300m as at 31 March 2026.   The Council’s Treasury Management Prudential Indicators for 2025/26 were agreed by Council on 25 February 2025 and performance against these indicators is shown in Appendix 1 to the report. All indicators are within target levels.   The average rate of return on operational investments for the period 1 April 2025 – 31 March 2026 is 4.03%, which is 0.07% above the 7 Day Sterling Overnight Index Average (SONIA) benchmark rate of 3.96%. For the same period, it is that strategic investments earned 4.18% which is 0.17% below the budgeted return of 4.25%.   The Council’s revenue budget outturn position for interest & capital financing costs for 2025/26 is £2.087m under budget and is included within the Revenue & Capital Outturn 2025/26 report to Cabinet on 2 July 2026. This variance is due to a combination of lower rates achieved on new borrowing when compared to budgeted rates, higher rates earned on investments than budgeted, and a lower Minimum Revenue Provision (MRP) charge, reflecting the rephasing of capital projects. The breakdown of the 2025/26 revenue budget for interest and capital financing, and the final year-end position, is included in Appendix 6 to the report. None.

Date of Decision: July 2, 2026