Camden Council has reviewed its treasury management performance for the 2024/25 financial year, highlighting the impact of borrowing by the North London Waste Authority (NLWA). The review took place at a Cabinet meeting on 17 September 2025.

The report, presented to the Cabinet, outlined the council's compliance with regulatory requirements and treasury indicators, while also providing an overview of the economic factors influencing treasury decisions. The council operated fully within its treasury and prudential indicators during 2024/25, reflecting strong governance and effective financial control. All borrowing was conducted within the authorised borrowing limits, and prudential indicators were monitored and adhered to. The council also complied fully with the CIPFA Code of Practice and the Authority's approved Treasury Management Strategy.

Key findings included:

  • The Council maintained a consistent risk profile and prudent investment and borrowing strategies.
  • The Council has not pursued high-risk commercial investments.
  • No new external borrowing is planned at present, with internal borrowing delivering annual savings of approximately £3.7 million. By continuing to rely on internal borrowing, the council has avoided locking in higher interest rates on long-term borrowing, thereby preventing avoidable costs to its revenue budgets. This decision has proved financially sound, given that external borrowing rates remained relatively high across the financial year, while investment returns on surplus cash holdings remained modest. Had the Council proceeded with new long-term borrowing in March 2025 at the prevailing rate of 5.87% for 50-year loans, it would have incurred a cost of carry of approximately £3.7 million, without an immediate need for that funding.
  • The Council operated fully within its treasury and prudential indicators during 2024/25.

The report also addressed the borrowing activities of the North London Waste Authority, which manages waste for seven North London boroughs, including Camden. The NLWA has borrowed £590 million to date, with expectations of further borrowing in late 2025. These funds are co-invested alongside Camden's balances, increasing overall investment levels. The North London Waste Authority (NLWA) continues to borrow significant sums (totalling £590m to date, with further borrowing expected in late 2025). These funds are co-invested alongside Camden's own balances, increasing overall investment levels.

The report also notes that the increasing level of under-borrowing represents a deferred liability, and future market conditions could necessitate a shift in strategy. The Council will therefore continue to monitor all relevant indicators including interest rates, cash balances, capital expenditure forecasts, and reserve levels on a regular basis to ensure its borrowing policy remains sustainable, affordable, and aligned with its broader strategic goals.

The Cabinet reviewed the Treasury Management Annual Outturn Report (CS/2025/10), presented by Councillor Camron Aref-Adib, Cabinet Member for Finance and Cost of Living. The report detailed the council's treasury outturn position and activity for the 2024/25 financial year.