Waltham Forest Council Reviews £537 Million Debt

Waltham Forest Council is reviewing its £537 million debt portfolio amid ongoing economic uncertainty. The council's investment strategy prioritises security and liquidity, with investments spread across money markets, UK banks, building societies and local authorities.

The council met on 16 October 2025 to discuss treasury management activities, including a review of the council's debt and investments. Councillors reviewed the Annual Treasury Management Review for 2024-25 and the Treasury Management Mid-Year Report for 2025-26.

According to the Annual Treasury Management Review, investment income for the year was £2.4 million, while interest payable totalled £19.9 million. The document does not specify a plan to address the difference. However, it does state that the council maintained an under-borrowed position and sought to minimise taking on long-term borrowing at elevated levels, focusing on internal and temporary borrowing, supplemented by short-dated borrowing as appropriate. The council's average investments were £48.1 million, with an average rate of 5.0% against a benchmark of 4.90%. The report noted that debts outstanding as of 31 March 2025, stood at £537.7 million, with an average interest rate of 4.18%.

To manage its debt, the council is employing a strategy of avoiding long-term debt where possible, focusing on internal and temporary borrowing, supplemented by short-dated borrowing as appropriate, according to the Annual Treasury Management Review.

The Treasury Management Mid-Year Report indicated that the council maintained an average investment balance of £49.9 million, earning an average interest rate of 4.24%, slightly above the benchmark of 4.21%. As of 30 September 2025, the council held £33.4 million in investments with an average interest rate of 4.05%, while the debt portfolio was £489.7 million, with an average interest payable of 3.92%.

The council agreed the Treasury Management activities from 1 April 2025 to 30 September 2025 as detailed in the 2025-26 Treasury Management Mid-Year report, and noted the Annual Treasury Management activities and performance against targets for the financial year 2024-25.