URL: https://democracy.darlington.gov.uk/ieDecisionDetails.aspx?ID=2045

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: The Cabinet Member with the Resources Portfolio introduced the report (previously circulated) of the Executive Director of Resources and Governance providing important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow; treasury activity for 2025/26; and seeking approval of the Prudential Indicator results for 2025/26 in accordance with the Prudential Code.   It was reported that the financial year 2025/26 was yet another unprecedented year with regard to treasury management due to a number of issues including the continuing conflict in Ukraine; events in the Middle East; inflation taking time to recover; the cost of borrowing continuing to rise steadily throughout the early part of the year; and that although the returns for cash investments had increased to higher interest rates they still remained below the cost of borrowing. The Council had complied with its legislative and regulatory requirements.   The submitted report summarised the Councils external debt as of 31 March 2026 was £167.597m which is £5.141m less than the previous year, this decrease relates to the repayment of a loan and not taking out any new borrowing due to slippage in capital schemes.   REASON - It is recommended that: (a)    The outturn 2025/26 Prudential Indicators within this report and those in Appendix 1 be noted. (b)   The Treasury Management Annual Report for 2025/26 be noted. (c)    This report to be forwarded to Council, in order for the 2025/26 Prudential Indicators to be noted.   RESOLVED - The recommendations are supported by the following reasons: (a)    In order to comply with the Prudential Code for Capital Finance in Local Authorities. (b)   To inform members of the Performance of the Treasury Management function. (c)    To comply with the requirements of the Local Government Act 2003.  

Date of Decision: September 8, 2026