The fair values calculated are as follows:

Financial Liabilities - Fair Value Fair Value Level 31 March 2025 31 March 2026

PWLB debt 2 (735,680) (529,076) (719,232) (495,203)

Non-PWLB debt 2 (84,622) (65,725) (74,570) (57,072)

Short term borrowing 2 (49,075) (49,075) (55,550) (55,550)

Total Borrowings (869,377) (643,876) (849,352) (607,825)

Trade Creditors - (129,791) (129,791) (116,955) (116,955)

Carrying Amount £000's Fair Value £000's Carrying Amount £000's Fair Value £000's

Financial Liabilities (999,168) (773,668) (966,308) (724,781)

The fair value of the liabilities is lower than the carrying amount because the council's portfolio of loans includes a number of fixed rate loans where the interest rate payable is lower than the rates available for similar loans in the market at the balance sheet date. This shows a notional future loss (based on economic conditions at 31 March 2026) arising from a commitment to pay interest to lenders below current market rates.

The fair value of Public Works Loan Board (PWLB) loans of £495.203m measures the economic effect of the terms agreed with the PWLB compared with estimates of the terms that would be offered for market transactions undertaken as at 31 March 2026. The difference between the carrying amount and the fair value measures the additional interest that the council will pay over the remaining terms of the loans under the agreements with the PWLB, against what would be paid if the loans were at prevailing market rates.

Cash and cash equivalents - 420,830 420,830 158,160 158,160

Short term investments 2 18,181 18,181 118,716 118,716

Long term investments 2 - - - -

Long term debtors - 59,869 43,914 59,723 29,281

Short term debtors - 84,293 84,293 77,356 77,356

Total Assets 583,174 567,219 413,955 383,513

Financial Assets - Fair Value Fair Value Level 31 March 2025 31 March 2026

Carrying Amount £000's Fair Value £000's Carrying Amount £000's Fair Value £000's

Short-term investments & borrowing, and short-term debtors & creditors are all carried at cost as this is a fair approximation of their value.