P A G E | 94 EALING COUNCIL DRAFT STATEMENT OF ACCOUNTS 2025/26
| Approved minimum limits | Approved maximum limits | 31 March 2025 £000's | 31 March 2026 £000's |
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| Loans Outstanding: | | | | |
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| Public Works Loans Board | | | 735,680 | 719,232 |
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| Market Debt | | | 84,622 | 74,570 |
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| Temporary Borrowing | | | - | - |
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| Other | | | 49,075 | 55,550 |
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| Total Loans outstanding | | | 869,377 | 849,352 |
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| Less than 1 year | 0% | 10% | 71,626 | 75,368 |
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| Between 1 and 2 years | 0% | 20% | 13,729 | 16,702 |
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| Between 2 and 5 years | 0% | 20% | 36,808 | 35,186 |
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| Between 5 and 10 years | 0% | 20% | 67,302 | 62,249 |
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| More than 10 years | 30% | 90% | 679,912 | 659,847 |
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| Total Loans outstanding | | | 869,377 | 849,352 |
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In the more than 10 years category, there are £45m of market loans Lenders Option Borrowers Option (LOBOs) which have call dates in the next 12 months, where the lender has the option to call the loan. The risk exposure and options for restructuring these loans are carried out on an ongoing basis. The maturity analysis of financial liabilities is outlined above and this falls within the maximum and minimum limits for fixed as agreed in the Treasury Management Strategy.
The council is exposed to interest rate movements on its borrowings and investments. Movements in interest rates have a complex impact on the council, depending on how variable and fixed interest rates move across differing financial instrument periods. For instance, a rise in variable and fixed interest rates would have the following effects:
Borrowings at variable rates – the interest expense charged to the Comprehensive Income and Expenditure Statement will rise
Borrowings at fixed rates – the fair value of the borrowing will fall (no impact on revenue balances)
Investments at variable rates – the interest income credited to the Comprehensive Income and Expenditure Statement will rise
Investments at fixed rates – the fair value of the assets will fall (no impact on revenue balances).
Borrowings are not carried at fair value on the balance sheet, so nominal gains and losses on fixed rate borrowings would not impact on the Surplus or Deficit on the Provision of Services or Other Comprehensive Income and Expenditure. However, changes in interest payable and receivable on variable rate borrowings and investments will be posted to the Surplus or Deficit on the Provision of Services and affect the General Fund Balance. Movements in the fair value of fixed rate investments that have a quoted market price will be reflected in the Other Comprehensive Income and Expenditure Statement.
If the council were to maintain the current balance of fixed investments, deposits and cash equivalents of £279m (31 March 2025: £441m) and interest rates increased or decreased by 1% when these fixed terms expired and were renewed at a higher or lower rate, the council's interest receivable could increase or decrease by £3m (31 March 2025: £4m).