Redbridge Council's treasury management activities for the 2025/26 financial year have exceeded benchmark returns on investments, achieving an average yield of 4.75% against a benchmark of 4.05%. This performance was noted in the Treasury Management Outturn Report for 2025/26, presented to the Council's Cabinet on Thursday, 16 July 2026.
The report confirmed that all treasury management operations adhered to the Council's Treasury Management Strategy. During the 2025/26 financial year, the Council's net borrowing position increased to £447.371 million.
The Council's borrowing strategy involved a mix of Public Works Loans Board (PWLB) loans and market loans. The PWLB remains the principal source of borrowing, with 80% of the Council's portfolio sourced from this body. The remaining 20% is from market loans. The Council also issued £63.8 million in 50-year Zero Coupon Instalment Indexed Redemption Bonds in November 2019, which yielded a total cash receivable of £75 million.
In terms of investments, the Council held £116.8 million as of 31 March 2026. These funds were diversified across various counterparties and Money Market Funds to manage credit and liquidity risks. The investment activity during the year conformed to the approved strategy, and the Council experienced no liquidity difficulties.
The report also detailed the Council's adherence to prudential indicators, which are used to ensure that the level of investment in capital assets remains within sustainable limits and that the impact on the Council's finances is manageable. The Council remained within its authorised borrowing limits and operational boundary throughout the financial year. The Treasury Management Outturn 2025/26
report includes a table summarizing these prudential indicators, covering Capital Expenditure net financing need, Capital Financing Requirement, Debt Vs Capital Financing Requirement, Affordability, Borrowing Limits (Authorised Limit and Operational Boundary), Maturity structure of borrowing, Interest rate exposure, Investments for longer than 365 days, and Liability benchmark. The Council's performance against these indicators for the 2025/26 financial year is detailed within the report.
