Issue - meetings

The Executive Councillor for Finance and Resources, Councillor B A Mickelburgh to present a report regarding Treasury Management Outturn Report 2024/25.

(The report was considered by the Overview and Scrutiny Panel (Performance and Growth) and the Cabinet at their meetings in June 2025. The Cabinet endorsed the recommendations).

With the aid of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) presented by the Executive Councillor for Finance & Resources, Councillor B A Mickelburgh. The report provided an update on treasury management activity for the period 1 April to 31 March 2025, including investment and borrowing activity and treasury performance.

By way of introduction, Councillor Mickelburgh proceeded to talk in detail through the following areas: economic review, the performance of Council funds, treasury risk management, non-treasury investments, interest rates compliance and treasury management indicators. The diligent scrutiny provided by the Overview and Scrutiny (Performance and Growth) Panel was noted along with note of member training for Scrutiny members in October 2024.

Attention was drawn to the Council’s Commercial Investment Strategy which had generated £3.1 million for the Council in 2024/25 after taking account of direct costs. We remain alert to the risks of vacancies and fluctuating property values, we are continuing to review the strategy albeit this has experienced delays due to LGR. It was noted that inflation had fluctuated across the year, and that the Bank of England rate had fallen, it was further observed that global events continued to create uncertainty, with the pace of interest rate decreases remaining uncertain.

Councillor A R Jennings praised Officers for the comprehensive and well written reports which were produced for Councillors on a regular basis and observed that there were often few questions to raise on the matter as the report author had anticipated and answered them within the body of the report. He continued that he was content that the Council had complied with all Prudential indicators, and was reassured to know that internal borrowing was being used to finance the CFR, furthermore he was pleased that for third year, interest receipts had far exceeded what was in the budget.

Councillor C M Gleadow echoed Councillor Jennings comments regarding the quality of the Treasury Management reports.

Councillor P J Hodgson-Jones reflected that the complexity of the reports made them challenging to understand which he was concerned may consequently reflect on the level of scrutiny. He also criticised the level of treasury investments that were short term, and expressed a desire to increase yield from cash to treasury, potentially through a move to longer dated investments with higher yields to give a larger return for the Council. He further suggested that land assets may be utilised to generate revenue to meet other needs of the Council although acknowledged that the impending LGR may pose difficulties

In response, the Executive Councillor, advised that longer term investment opportunities along with utilisation of assets were being investigated and that he would look to develop and exploit these opportunities in a timely manner in order to benefit both the Council and residents of Huntingdonshire.

Whereupon it was

RESOLVED

that the treasury management performance for 2024/25 be noted.

To consider a report which sets out the treasury performance for the period between 1 April 2024 and 31 March 2025.

Executive Councillor: B Mickelburgh.

The Cabinet has considered and commented on the treasury management performance for 2024/25 and recommends the report to Council for consideration.

A report by the Head of Finance was submitted (a copy of which is appended in the Minute Book) providing an update on the Council’s treasury management activity during 2024/25, including investment and borrowing activity and treasury performance.

The Executive Councillor for Finance & Resources drew attention to the comments from the Overview & Scrutiny Panel and similarly commended how readable the report was.

He also made reference to a response to a question put to the Financial and Treasury Accountant during the Overview & Scrutiny Panel, which was that with DMO where it was, and with a lot of the Council’s money being in there and outperforming the money market he was comfortable with the status. Accordingly, the Cabinet were particularly pleased to note that that the Financial and Treasury Accountant was equally content.

The Executive Councillor for Finance & Resources further commended the professionalism and quality of the team and the work they were doing.

Whereupon, it was

RESOLVED

that the Cabinet considered and commented on the treasury management performance for 2024/25 and recommends the report to Council for consideration.