This report updates Members on the activity of the Treasury Management function.

The Committee considered a report setting out an update on the activity of the Treasury Management function during the second quarter of 2025/26 for the period 1 July 2025 to 30 September 2025.  The following documents were attached to the report:

·         Appendix 1 - MUFG Corporate Markets Economics Update

·         Appendix 2 - Borrowing Portfolio as at 30th September 2025

·         Appendix 3 - Investment Portfolio as at 30th September 2025

·         Appendix 4 - Approved Countries for Investments as at 30th September 2025

The report noted that the Council remained significantly under borrowed against its Capital Financing Requirement and was continuing to follow the approved borrowing strategy of deferring any potential long-term borrowing whilst interest rates remained at current levels, and instead utilising short or temporary borrowing from the local authority market as required. No long-term loans (those over one year in duration) had been taken out during the year to date.

The Council’s Borrowing and Investment portfolios were attached to the report at Appendices 2 and 3, and the report explained that the current forecast was a positive variance of £1.404m on investment income for the year and a negative variance of £0.914m on interest payable.  These variances had been reported to Policy Committee on 17 December 2025 as part of the 2025/26 Quarter 2 Performance and Monitoring Report (Minute 53 refers).  The Council continued to operate within all of its treasury and prudential indicators set out in the Council’s Treasury Management Strategy Statement for 2025/26, and none had been breached during the year to date.

A number of queries were raised at the meeting which would be responded to in writing by officers.

Resolved –

            That the content of the Treasury Management Review Quarter 2 report for 2025/26 be noted.