11th March 2026
Stockport Council has reported a strong performance for its Treasury Management activities in the third quarter of the 2025/26 financial year, even as interest rates fell faster than anticipated.
The council’s investment portfolio achieved an impressive 4.16% return by 31 December 2025, outperforming initial expectations. However, with the Bank of England reducing the base rate to 3.75%, the council is now shifting its focus from chasing higher returns to ensuring liquidity to meet the borough’s ongoing capital projects.
By using internal cash reserves to fund part of its Capital Programme, the council is reducing the need for expensive borrowing and keeping future debt costs manageable. Investment income for the full year is now expected to average around 3.9%, a natural effect of declining interest rates.
On the borrowing side, Stockport is taking a cautious approach, focusing on short-term debt of 1–3 years. This allows flexibility to refinance in 2027 if long-term rates fall, protecting taxpayers from unnecessarily high interest costs.
The council’s Treasury Management team remains fully compliant with the approved Treasury Management Strategy and CIPFA guidelines, prioritising security and liquidity of public funds. All activities stayed within set Prudential Indicators, meaning the council’s debt and capital financing remain sustainable.
For residents, the message is clear: Stockport is managing its money responsibly, earning solid returns while safeguarding capital and preparing for future investment opportunities — all without placing extra pressure on council tax or housing rents.
Stockport Council Q3 2025/26 Prudential Indicators
Capital Programme & Financing Snapshot
| Indicator | Budget 2025/26 | Q3 2025/26 | Key Message |
|---|---|---|---|
| Capital Expenditure (£M) | 163.3 | 111.7 | Two-thirds of planned capital spending completed |
| Capital Financing Requirement (CFR) (£M) | 964.4 | 934.8 | Total debt requirement slightly below annual plan |
| In-year Borrowing Requirement (£M) | 38.6 | 9.3 | Minimal borrowing needed so far due to use of cash reserves |
| Financing Costs / Revenue (Non-HRA) | 63.7% | 39.0% | Debt service remains affordable relative to council revenue |
| Financing Costs / Revenue (HRA) | 10.3% | 9.6% | Housing-related debt well managed |
| Impact on Council Tax / Average Rent | 9.68% | 9.43% | Slightly below budgeted increase; low impact on residents |
Takeaways for Residents:
- The council is progressing its capital projects while keeping borrowing under control.
- Debt servicing is sustainable, so services are funded without excessive financial pressure.
- Council tax and rents remain stable, with projected increases slightly below initial forecasts.
- The treasury team continues to prioritize secure investments and liquidity, ensuring public funds are protected.
