Issue - meetings

Report of the Director - Finance and Corporate Services

The Finance Business Partner presented the Capital and Investment Strategy Outturn 2025/26 which summarised the transactions undertaken during the year against the Council’s Capital and Investment Strategy 2024/25.

The report set out the prudential indicators and the Finance Business Partner explained that slippage in the capital programme meant that capital expenditure was lower than budgeted, with full details available in the report that went to Corporate Overview Group.

The Finance Business Partner advised that the Council’s investment balances were slightly lower due to s106 monies being released during the year but that higher interest rates had resulted in investment income exceeding budget.

The Finance Business Partner referred the Group to Table 3 which set out the Council’s Capital Financing Requirement and confirmed that the Council had no need to borrow in the medium-term She referred to Table 4 which set out information regarding the Council’s Ratio of Financing Costs to Net Revenue Streams and said that Actual for 2025/26 was negative as a result of investment income exceeding MRP payments.

The Finance Business Partner referred the Group to Table 5 which showed that net income from commercial and service investments was higher than expected and referred to Table H which showed investments held at 31 March 2026. She confirmed that the Council’s investments were spread over a diverse portfolio to protect them from interest risk whilst also allowing easy access for liquidity purposes.

The Finance Business Partner took the Group through Table 9 explaining the Council’s diversified funds and Table 12 which detailed the Council’s commercial income. She concluded that the position on the Council’s investments remained fluid, with global market uncertainty and inflationary pressures. She said that the Council’s investments would be closely monitored and reported back to this Group.

Councillor Om asked about investment rates achieved and whether additional funds could be placed with institutions offering higher returns. The Finance Business Partner explained that the rates presented were the rates given on the date of the report and the Assistant Director of Finance added that management decisions were governed by the Council’s strategy and that factors such as risk had to be considered alongside interest rates.

Councillor Gowland asked about the amount of the Council’s reserves in relation to the Council’s annual expenditure or turnover and asked what would happen to those reserves under local government reorganisation (LGR). The Assistant Director of Finance said that the details of LGR were to be confirmed but it was expected that they would transfer to the new council. She said that she would report back information regarding the ratio of reserves to expenditure to the Group.

It was RESOLVED that the Governance Scrutiny Group considered and scrutinised the Capital and Investment Strategy 2025/26 outturn position.