The council manages its liquidity position through the risk management procedures above (the setting and approval of prudential indicators and the approval of the treasury and investment strategy reports), as well as through a comprehensive cash flow management system, as required by the CIPFA Treasury Management Code of Practice. This seeks to ensure that cash is available when needed.
The council has ready access to borrowings from the money markets to cover any day-to-day cash flow need, and the PWLB and money markets for access to longer term funds. The council is also required to provide a balanced budget through the Local Government Finance Act 1992, which ensures sufficient monies are raised to cover annual expenditure. There is therefore no significant risk that it will be unable to raise finance to meet its commitments under financial instruments.
The maturity analysis of financial assets, excluding sums due from customers, is as follows:
| 31 March 2025 £000's | 31 March 2026 £000's |
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| Investments Outstanding: | | |
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| Local Authorities | - | 100,668 |
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| Debt Management Office | 345,851 | 109,098 |
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| UK Banks and Building Society | 48,084 | 57,318 |
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| Other | 47,214 | 11,930 |
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| Total Investments outstanding | 441,148 | 279,013 |
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| Less than 1 year | 439,012 | 276,876 |
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| Between 1 and 2 years | - | - |
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| Between 2 and 5 years | - | - |
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| Between 5 and 10 years | - | - |
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| More than 10 years | 2,136 | 2,136 |
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| Total Investments outstanding | 441,148 | 279,013 |
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All trade and other payables are due to be paid in less than one year.
The council maintains a significant debt and investment portfolio. Whilst the cash flow procedures above are considered against the refinancing risk procedures, longer-term risk to the council relates to managing the exposure to replacing financial instruments as they mature. This risk relates to both the maturing of longer-term financial liabilities and longer-term financial assets.
The council has safeguards in place to ensure that a significant proportion of its borrowing does not mature for repayment at any one time in the future to reduce the financial impact of re-borrowing at a time of unfavourable interest rates. The council's policy is to ensure that not more than 20% of loans are due to mature within any financial year through a combination of prudent planning of new loans taken out and, where it is economic to do so, making early repayments.
The maturity analysis of financial liabilities is as follows, with the maximum and minimum limits for fixed interest rates maturing in each period (approved by Full Council in the Treasury Management Strategy):