Southwark Council has identified loans to local institutions as high risk, according to the 2024-25 treasury management annual outturn report presented at the Council Assembly meeting on 9 July 2025. The council has implemented increased monitoring of these institutions' financial positions to address potential repayment issues.
The report, which can be found in the Supplemental Agenda No 1, provided an update on the economic background and confirmed that all treasury management activity was undertaken in compliance with the approved treasury management strategy.
As of 31 March 2025, the balance outstanding on all external debt was £1,159 million, while investments stood at £53 million. The council's treasury management strategy aims to manage borrowing for the capital programme at optimal cost and invest surplus cash balances securely while obtaining a reasonable return.
During the meeting, councillors reviewed the council's borrowing and investment activities. Short-term borrowing of £95 million was undertaken during the financial year to manage liquidity requirements, but these were repaid by year-end. Long-term loans were also secured from the Public Works Loan Board (PWLB) for both the General Fund and Housing Revenue Account (HRA).
The council also raised £1.5 million through green bonds to finance environmental initiatives. Of this, over £1.1 million has already been deployed across projects such as:
- 21 new cycle hangers
- 1,790 new efficient LED street lights on our highways and parks
- Two new Library of Things
- New solar panels of Peckham Pulse Leisure Centre
- Green upgrades at council schools, leisure centres, cemeteries and crematorium.
The remaining funds from the £1.5 million raised through green bonds will be deployed during 2025-26.
The report also highlighted a favourable variance against the budget of £12 million for net interest payable, with interest payable at £43.6 million against a budget of £54.7 million.
The minutes of the meeting show that after a debate, the council assembly noted the Treasury Management Outturn 2024-25 report.