Hampshire County Council
Councillors:
78
Wards:
76
Committees:
49
Meetings (2026):
57
Meetings (2025):
155
Meeting
HIWFRA Audit and Governance Committee - Hampshire
Meeting Times
Scheduled Time
Start:
Friday, 5th December 2025
2:30 PM
Friday, 5th December 2025
2:30 PM
End:
Friday, 5th December 2025
6:30 PM
Friday, 5th December 2025
6:30 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
05 Dec 2025
05 Dec 2025
Location:
Room X - Hampshire & IOW Fire & Police HQ, Eastleigh
Room X - Hampshire & IOW Fire & Police HQ, Eastleigh
Meeting Attendees
Committee Member
Vice Chairman of the Council
Committee Member
Councillor Sally Goodfellow
Liberal Democrat and Labour for HIWFRA (Southampton City Council)
Apologies
Independent Group Deputy
Councillor Karen Lucioni
Independent Alliance Group for HIWFRA (Isle of Wight Council)
Not required
Agenda
1
Apologies for Absence
To receive any apologies for absence.
Minutes
Apologies were received from Cllr Goodfellow.
2
Declarations of Interest
To enable Members to disclose to the meeting any disclosable pecuniary interest they may have in any matter on the agenda for the meeting, where that interest is not already entered in the Authority’s register of interests, and any other pecuniary or non-pecuniary interests in any such matter that Members may wish to disclose.
Minutes
Members were mindful of their duty to disclose at the meeting any Disclosable Pecuniary Interest they had in any matter on the agenda for the meeting, where that interest was not already in the Authority’s register of interests, and their ability to disclose any other personal interests in any such matter that they might have wished to disclose.
3
Minutes of Previous Meeting
To confirm the minutes of the previous meeting held on 25 September 2025.
Attachments:
- Document 2025 09 25 HIWFRA A&G Minutes DRAFT 27 Nov 2025
Minutes
The minutes of the last meeting were reviewed and agreed.
4
Deputations
Pursuant to Standing Order 19, to receive any deputations to this meeting
Minutes
There were no Deputations.
5
Chairman's Announcements
To receive any announcements the Chairman may wish to make.
Minutes
There were no formal Chairman’s Announcements.
6
Co-Opted Independent Member Of Audit And Governance Committee And Independent Person Recruitment
To receive a report seeking approval to recruit a co-opted independent member for the Audit and Governance Committee and a second Independent Person for the Fire Authority, in line with CIPFA best practice.
Attachments:
- Document 2025-12-05 Co-opted Independent Member of A&GC and Independent Person Recruitment Report 27 Nov 2025
- Document 2025-12-05 Co-opted Independent Member of A&GC Job Description - Appendix A 27 Nov 2025
Minutes
The committee received the Co-opted Independent Member of Audit and Governance Committee and Independent Person Recruitment report from the monitoring officer (item 6 in the agenda).
Members noted that the Authority already has one Independent Person in post, but that best practice recommends the appointment of two. The Committee discussed the need to recruit a second Independent Person and agreed that, as the membership of the Committee has changed since the original Working Group was established, it would be appropriate to reappoint the group. To ensure sufficient availability for the recruitment process, it was agreed that all full members of the Committee would form the Working Group, allowing flexibility if some members are unavailable for meetings.
The Committee also considered the CIPFA recommendation to appoint a Co-Opted Independent Member, with the Working Group to assist in this recruitment as well. The process for calculating the allowance for the Co-Opted Member was explained, with reference to benchmarking information provided in the report (see page 24 of the agenda pack).
In response to a question from Councillor Parker-Jones regarding the independence of the Co-Opted Member, it was confirmed that the recruitment process would include specific disqualifying factors. Recruitment is scheduled to commence in January, with Working Group meetings to be arranged thereafter.
RESOLVED
· The Committee established a Working Group comprising of all full members of the Committee to undertake the shortlisting and interview process for the recruitment of:
• one co-opted Independent Member to the Audit and Governance Committee; and
• a second Independent Person to the Fire Authority
· The Working Group will bring forward their recommendations for appointment to the Audit and Governance Committee, for subsequent recommendation and approval to the Full Authority.
· The Committee agreed that a basic allowance for the co-opted independent member role of £1,804.62 be recommended by the HIWFRA Audit and Governance Committee for approval by the Full Authority and subsequent inclusion in the Members Allowance scheme.
Members noted that the Authority already has one Independent Person in post, but that best practice recommends the appointment of two. The Committee discussed the need to recruit a second Independent Person and agreed that, as the membership of the Committee has changed since the original Working Group was established, it would be appropriate to reappoint the group. To ensure sufficient availability for the recruitment process, it was agreed that all full members of the Committee would form the Working Group, allowing flexibility if some members are unavailable for meetings.
The Committee also considered the CIPFA recommendation to appoint a Co-Opted Independent Member, with the Working Group to assist in this recruitment as well. The process for calculating the allowance for the Co-Opted Member was explained, with reference to benchmarking information provided in the report (see page 24 of the agenda pack).
In response to a question from Councillor Parker-Jones regarding the independence of the Co-Opted Member, it was confirmed that the recruitment process would include specific disqualifying factors. Recruitment is scheduled to commence in January, with Working Group meetings to be arranged thereafter.
RESOLVED
· The Committee established a Working Group comprising of all full members of the Committee to undertake the shortlisting and interview process for the recruitment of:
• one co-opted Independent Member to the Audit and Governance Committee; and
• a second Independent Person to the Fire Authority
· The Working Group will bring forward their recommendations for appointment to the Audit and Governance Committee, for subsequent recommendation and approval to the Full Authority.
· The Committee agreed that a basic allowance for the co-opted independent member role of £1,804.62 be recommended by the HIWFRA Audit and Governance Committee for approval by the Full Authority and subsequent inclusion in the Members Allowance scheme.
7
HIWFRA Member Allowances Scheme
To receive a report presenting the recommendations of the HIWFRA Members’ Allowances Informal Working Group regarding the Members’ Allowances Scheme.
Attachments:
- Document 2025-12-05 Member Allowances Scheme (2026-30) Report 27 Nov 2025
- Document 2025-12-05 Member Allowances Scheme (2026-30) Report - Appendix 1 - HIWFRA Members' Allowance Scheme 2022-2026 - Revised for Pay Uplift April 2025 27 Nov 2025
- Document 2025-12-05 Member Allowances Scheme (2026-30) Report - Appendix 2 - Proposed HIWFRA Members' Allowance Scheme 2026-2030 27 Nov 2025
- Document 2025-12-05 Member Allowances Scheme (2026-30) Report Appendix 3 - HIWFRA Member Allowances Working Group Report 27 Nov 2025
- Document 2025-12-05 Member Allowances Scheme (2026-30) Report - Appendix 4 - HIWFRA Members Allowances Informal Working Group Minutes - 6 November 2025 27 Nov 2025
Minutes
The Committee received the HIWFRA Member Allowances Scheme Report from the Monitoring Officer (item 7 in the agenda).
Members noted that the current Members’ Allowances Scheme covers the period 2022–2026, and that the proposed scheme would apply for the next four-year term. The Informal Working Group met in November to consider the wider context, including devolution, Local Government Reorganisation (LGR), and the recommendations of the Independent Remuneration Panels (IRPs). Following this review, the Working Group recommended that the new scheme should continue in the same format and with the same allowances as the current scheme. It was confirmed that the scheme can be amended at any point if required.
In response to a query from Councillor Harrison regarding whether the delay to the Mayoral election would have any impact on the decision, Members were advised that LGR arrangements remain unchanged and therefore there is no impact on the scheme.
RESOLVED
The HIWFRA Audit and Governance Committee recommend to the HIWFRA Full Authority that, given the current context of Devolution and Local Government Reorganisation, the current scheme at Appendix 2 be continued for the maximum term.
Members noted that the current Members’ Allowances Scheme covers the period 2022–2026, and that the proposed scheme would apply for the next four-year term. The Informal Working Group met in November to consider the wider context, including devolution, Local Government Reorganisation (LGR), and the recommendations of the Independent Remuneration Panels (IRPs). Following this review, the Working Group recommended that the new scheme should continue in the same format and with the same allowances as the current scheme. It was confirmed that the scheme can be amended at any point if required.
In response to a query from Councillor Harrison regarding whether the delay to the Mayoral election would have any impact on the decision, Members were advised that LGR arrangements remain unchanged and therefore there is no impact on the scheme.
RESOLVED
The HIWFRA Audit and Governance Committee recommend to the HIWFRA Full Authority that, given the current context of Devolution and Local Government Reorganisation, the current scheme at Appendix 2 be continued for the maximum term.
8
Draft External Audit Results Report 2024/25
To receive the draft Audit Results Report for 2024/25 from the external auditor, EY. This report follows the annual audit of the Authority’s Statement of Accounts, conducted in accordance with statutory requirements.
Attachments:
- Document 2025-12-05 External Audit Results cover report 27 Nov 2025
- Document Appendix A 27 Nov 2025
Minutes
The Committee received the Draft Audit Results Report 2024/25 from the Chief Financial Officer (item 8 in the agenda) including the supplementary appendix, which was the draft audit results report for 2024/25 issued by Andrew Brittain, the audit partner from EY, the Authority’s external auditor.
The report from EY highlighted the measures introduced by the Ministry of Housing, Communities and Local Government (MHCLG, formerly the Department for Levelling Up, Housing and Communities (DLUHC)) to address the national audit backlog. The audit of the Authority’s accounts continues to be impacted by the national audit backlog, particularly the disclaimed opinion that had to be issued for 2022/23 when the impact of the backlog meant that audit work was not completed. Members were reminded of the audit process for the current year as set out in the report. It was noted that EY is considering issuing a qualified opinion for the current year, rather than a disclaimed opinion, which would represent a positive step forward. The audit timeline remains consistent with national guidance, and Members were advised that, should a disclaimed opinion be necessary, this would not be viewed negatively given the wider context. Work is ongoing to rebuild assurances for 2025/26.
The Committee’s attention was drawn to page 6, which sets out changes since the last update, and it was confirmed that the value for money audit is now complete. The final version of the Statement of Accounts is awaited, after which EY will issue their final opinion. Since the last report, further testing has been undertaken on property valuations, with EY identifying an error in relation to the value used for the build cost of solar panels.
Members were introduced to a new table on pages 9–10, explaining that this assessment is new for this year and that the overall outcome was positive. Discussions are ongoing with the Chief Financial Officer regarding planning for the next audit cycle, and it was noted that there were no red ratings in the assessment, which was highlighted as significant and suggests the Authority is in a good place with some areas where improvements could be made.
Appendix B now includes an additional table setting out assurance ratings, which are consistent with last year, and Members were assured that substantial work is being undertaken to make further progress.
During discussion, Councillor Parker queried when the Authority might move out of the cycle of disclaimed opinions, noting that the situation arose due to sector-wide audit challenges. Members were advised that further information is provided in the appendix, and that while the current year could result in either a qualified or disclaimed opinion, the expectation is to move to qualified opinions for 2026/27 and a full opinion in 2027/28, subject to central guidance.
Councillor Parker-Jones raised concerns about the observation on access to the finance team and personnel on page 9 of the auditor’s report and asked how errors in valuations could be prevented in future. EY advised that audit scheduling is coordinated to cover all areas, with the audit of Hampshire County Council scheduled to start before the audit of the Authority’s accounts, but with some overlap. Andrew Brittain explained that he is the audit partner for both audits but with different teams working on each audit. It is the same finance team supporting both audits. The issue of access to staff was noted as an observation rather than a significant issue. The Chief Financial Officer confirmed that there were times when full responses to audit questions could not be provided in the timescales requested by EY but that the finance team was always available to support the audit. Councillor Drew suggested that the wording on page 9 regarding response times should be refined, as delays related to the provision of data rather than access to the finance team. The Chief Financial Officer confirmed that planning is already underway to work with the audit team on the approach for next year to learn from the experience during the current audit.
On valuations, EY explained that differences are often due to professional judgement but can also be due to errors (such as the use of incorrect floor areas). This is the first year of valuations being prepared for the Authority by a new external valuer. The EY team utilised in-house specialists to review the figures. Councillor Harrison queried the use of the term “error” in the report, and it was clarified that where this was used it referred specifically to the use of incorrect data, rather than a difference of professional opinion.
EY clarified that the assurance rating of “none” for reserves on page 33 does not indicate that the reserves figures are wrong, instead it means that the work that EY have been able to complete does not allow them to give assurance that the reserves figures are materially correct. This is because of the impact of the national audit backlog and reflects the absence of audited closing balances for 2022/23.
RESOLVED
The HIWFRA Audit and Governance Committee noted the draft Audit Results Report from the external auditor (Appendix A).
The report from EY highlighted the measures introduced by the Ministry of Housing, Communities and Local Government (MHCLG, formerly the Department for Levelling Up, Housing and Communities (DLUHC)) to address the national audit backlog. The audit of the Authority’s accounts continues to be impacted by the national audit backlog, particularly the disclaimed opinion that had to be issued for 2022/23 when the impact of the backlog meant that audit work was not completed. Members were reminded of the audit process for the current year as set out in the report. It was noted that EY is considering issuing a qualified opinion for the current year, rather than a disclaimed opinion, which would represent a positive step forward. The audit timeline remains consistent with national guidance, and Members were advised that, should a disclaimed opinion be necessary, this would not be viewed negatively given the wider context. Work is ongoing to rebuild assurances for 2025/26.
The Committee’s attention was drawn to page 6, which sets out changes since the last update, and it was confirmed that the value for money audit is now complete. The final version of the Statement of Accounts is awaited, after which EY will issue their final opinion. Since the last report, further testing has been undertaken on property valuations, with EY identifying an error in relation to the value used for the build cost of solar panels.
Members were introduced to a new table on pages 9–10, explaining that this assessment is new for this year and that the overall outcome was positive. Discussions are ongoing with the Chief Financial Officer regarding planning for the next audit cycle, and it was noted that there were no red ratings in the assessment, which was highlighted as significant and suggests the Authority is in a good place with some areas where improvements could be made.
Appendix B now includes an additional table setting out assurance ratings, which are consistent with last year, and Members were assured that substantial work is being undertaken to make further progress.
During discussion, Councillor Parker queried when the Authority might move out of the cycle of disclaimed opinions, noting that the situation arose due to sector-wide audit challenges. Members were advised that further information is provided in the appendix, and that while the current year could result in either a qualified or disclaimed opinion, the expectation is to move to qualified opinions for 2026/27 and a full opinion in 2027/28, subject to central guidance.
Councillor Parker-Jones raised concerns about the observation on access to the finance team and personnel on page 9 of the auditor’s report and asked how errors in valuations could be prevented in future. EY advised that audit scheduling is coordinated to cover all areas, with the audit of Hampshire County Council scheduled to start before the audit of the Authority’s accounts, but with some overlap. Andrew Brittain explained that he is the audit partner for both audits but with different teams working on each audit. It is the same finance team supporting both audits. The issue of access to staff was noted as an observation rather than a significant issue. The Chief Financial Officer confirmed that there were times when full responses to audit questions could not be provided in the timescales requested by EY but that the finance team was always available to support the audit. Councillor Drew suggested that the wording on page 9 regarding response times should be refined, as delays related to the provision of data rather than access to the finance team. The Chief Financial Officer confirmed that planning is already underway to work with the audit team on the approach for next year to learn from the experience during the current audit.
On valuations, EY explained that differences are often due to professional judgement but can also be due to errors (such as the use of incorrect floor areas). This is the first year of valuations being prepared for the Authority by a new external valuer. The EY team utilised in-house specialists to review the figures. Councillor Harrison queried the use of the term “error” in the report, and it was clarified that where this was used it referred specifically to the use of incorrect data, rather than a difference of professional opinion.
EY clarified that the assurance rating of “none” for reserves on page 33 does not indicate that the reserves figures are wrong, instead it means that the work that EY have been able to complete does not allow them to give assurance that the reserves figures are materially correct. This is because of the impact of the national audit backlog and reflects the absence of audited closing balances for 2022/23.
RESOLVED
The HIWFRA Audit and Governance Committee noted the draft Audit Results Report from the external auditor (Appendix A).
9
Internal Audit Progress Report 2025/26
To receive a report providing an overview of internal audit activity and assurance work completed in accordance with the approved audit plan and an overview of key updates relevant to the discharge of the committee’s role in relation to internal audit.
Attachments:
- Document 2025-12-05 Internal Audit Progress Report 27 Nov 2025
- Document 2025-12-05 Internal Audit Progress Report -Appendix A 27 Nov 2025
Minutes
The Committee received the Internal Audit Progress Report 2025/26 from the Chief Internal Auditor (item 9 in the agenda).
Since publishing the report, Members were advised that the draft report on Shared Services E Store Catalogue - Governance and Management has been issued, and the Power Platforms audit report is due to be issued next week, which will bring overall audit plan completion up to 47%.
The Committee noted that both the Risk Management and Driver Training audits have concluded with reasonable assurance ratings. It was also reported that recruitment has been successful, adding additional resource into the IT and Data Analytics team and strengthening the partnership’s overall capability and capacity. In response to a question from Councillor Harrison regarding communication with the HIWFRA team, assurance was given that lines of communication are good and planning for the next year’s audit work is already underway.
RESOLVED
Members noted Appendix A: Internal Audit Progress Report - November 2025; and approved the adjustments to the internal audit plan 2025-26.
Since publishing the report, Members were advised that the draft report on Shared Services E Store Catalogue - Governance and Management has been issued, and the Power Platforms audit report is due to be issued next week, which will bring overall audit plan completion up to 47%.
The Committee noted that both the Risk Management and Driver Training audits have concluded with reasonable assurance ratings. It was also reported that recruitment has been successful, adding additional resource into the IT and Data Analytics team and strengthening the partnership’s overall capability and capacity. In response to a question from Councillor Harrison regarding communication with the HIWFRA team, assurance was given that lines of communication are good and planning for the next year’s audit work is already underway.
RESOLVED
Members noted Appendix A: Internal Audit Progress Report - November 2025; and approved the adjustments to the internal audit plan 2025-26.
10
Internal Audit Management Actions Progress Report
To receive a report providing an update on overdue medium and high-priority internal audit management actions, outlining reasons for delays, and highlighting progress on recent audits.
Attachments:
- Document 2025-12-05 Internal Audit Management Actions Progress Report 27 Nov 2025
Minutes
The Committee received the Internal Audit Management Actions Progress Report from the Chief Fire Officer (item 10 in the agenda).
The report provided further detail on overdue internal audit management actions, with paragraph 7 on page 54 highlighting those still outstanding. Members were reminded that, as explained at the previous meeting, the target deadline for completion of these actions is the end of December and the Committee was advised that progress remains on track to meet this. The external company’s data cleansing work is now complete, and internal testing is underway. Several actions have already been closed, with the remainder being worked through.
Councillor Parker expressed a preference for actions due on 1 December to have been completed by now and anticipated that at least half of those due by 31 December would also be closed, given the proximity of the deadline. In response, the Head of Corporate Governance and Support explained that internal governance processes require actions to be signed off by an internal board, with the relevant meeting scheduled for 15 December. It was confirmed that the cleansing work is nearly finished, with only final checks outstanding, and that all actions are expected to be closed off by the end of the month.
RESOLVED
The HIWFRA Audit and Governance Committee noted progress made towards the implementation of the internal audit management actions and the delivery of the audit plan.
The report provided further detail on overdue internal audit management actions, with paragraph 7 on page 54 highlighting those still outstanding. Members were reminded that, as explained at the previous meeting, the target deadline for completion of these actions is the end of December and the Committee was advised that progress remains on track to meet this. The external company’s data cleansing work is now complete, and internal testing is underway. Several actions have already been closed, with the remainder being worked through.
Councillor Parker expressed a preference for actions due on 1 December to have been completed by now and anticipated that at least half of those due by 31 December would also be closed, given the proximity of the deadline. In response, the Head of Corporate Governance and Support explained that internal governance processes require actions to be signed off by an internal board, with the relevant meeting scheduled for 15 December. It was confirmed that the cleansing work is nearly finished, with only final checks outstanding, and that all actions are expected to be closed off by the end of the month.
RESOLVED
The HIWFRA Audit and Governance Committee noted progress made towards the implementation of the internal audit management actions and the delivery of the audit plan.
11
HMICFRS Inspection Outcome Update
To receive a report providing Members with assurance on the Service’s response to the latest HMICFRS inspection, highlighting key areas for improvement and outlining actions being taken to address identified concerns and recommendations.
Attachments:
- Document 2025-12-05 HMICFRS Inspection Outcome Report 27 Nov 2025
Minutes
The Committee received the HMICFRS Inspection Outcome Update Report from the Chief Fire Officer (item 11 in the agenda).
This item addressed the areas for improvement identified in the HMICFRS inspection report published in August 2025, which, while generally positive, included eighteen Areas for Improvement (AFIs) and two Causes of Concern. The Committee reviewed the ongoing work to ensure all points are addressed, noting that an action plan has been submitted to HMICFRS and that a meeting is scheduled for next week, with a formal reinspection due in April to confirm completion of the action plan. Page 61 of the agenda pack sets out the specific areas for improvement, and Members were advised that the planned activities for years one and two are designed to address these points. Although all AFIs are rated at level 3 and require a Chief Fire Officer’s letter to explain that HIWFRS feel the AFI is closed, they cannot be formally closed until the reinspection is complete.
The Committee welcomed the introduction of HMICFRS’s new governance programme, which is supporting the Authority’s improvement efforts. Councillor Parker noted that the Service Liaison Lead is visiting next week and asked whether there had been any indication that the action plan is acceptable; assurance was given that directors have met to ensure alignment and that an in-person meeting will confirm readiness. Councillor Harrison asked whether the Authority had been unfairly treated compared to other services. It was confirmed that the inspection findings were fair and that the focus is now on improvement and strengthening relationships with HMICFRS to better understand their expectations.
Councillor Drew asked whether a published list of rated areas is available to help the Authority prepare for future inspections. Members were advised that HMICFRS has introduced a new grading system, which may affect ratings independently of performance, and now publishes “characteristics of good” to support preparation and focus for future inspections. The Committee noted the existence of a clear improvement plan.
RESOLVED
The HIWFRA Audit and Governance Committee noted the HMICFRS inspection outcome update report.
This item addressed the areas for improvement identified in the HMICFRS inspection report published in August 2025, which, while generally positive, included eighteen Areas for Improvement (AFIs) and two Causes of Concern. The Committee reviewed the ongoing work to ensure all points are addressed, noting that an action plan has been submitted to HMICFRS and that a meeting is scheduled for next week, with a formal reinspection due in April to confirm completion of the action plan. Page 61 of the agenda pack sets out the specific areas for improvement, and Members were advised that the planned activities for years one and two are designed to address these points. Although all AFIs are rated at level 3 and require a Chief Fire Officer’s letter to explain that HIWFRS feel the AFI is closed, they cannot be formally closed until the reinspection is complete.
The Committee welcomed the introduction of HMICFRS’s new governance programme, which is supporting the Authority’s improvement efforts. Councillor Parker noted that the Service Liaison Lead is visiting next week and asked whether there had been any indication that the action plan is acceptable; assurance was given that directors have met to ensure alignment and that an in-person meeting will confirm readiness. Councillor Harrison asked whether the Authority had been unfairly treated compared to other services. It was confirmed that the inspection findings were fair and that the focus is now on improvement and strengthening relationships with HMICFRS to better understand their expectations.
Councillor Drew asked whether a published list of rated areas is available to help the Authority prepare for future inspections. Members were advised that HMICFRS has introduced a new grading system, which may affect ratings independently of performance, and now publishes “characteristics of good” to support preparation and focus for future inspections. The Committee noted the existence of a clear improvement plan.
RESOLVED
The HIWFRA Audit and Governance Committee noted the HMICFRS inspection outcome update report.
12
Treasury Management Mid-Year Report 2025/26
To receive a report providing an update on the Authority’s cash flow, investments, and borrowing activities for the first half of the year, confirming compliance with the approved strategy and all relevant regulations.
Attachments:
- Document 2025-12-05 Treasury Management mid-year report 27 Nov 2025
- Document 2025-12-05 Treasury Management Mid-Year Report Appendix A 27 Nov 2025
Minutes
The Committee received the Treasury Management Mid-Year Report 2025/26 from the Chief Fire Officer (item 12 in the agenda).
Andrew Boutflower, Head of Investments and Borrowing at Hampshire County Council, and Daniel O’Rourke, Corporate Accountant at Hampshire County Council, presented an overview of the Authority’s cash management, including the types of borrowing (short and long term) and investment options available. Members were shown how reserves have decreased due to planned expenditure, including expenditure on capital assets, which impacts on investment balances. The Authority’s capital programme has also meant taking on new borrowing.
The presentation highlighted the Authority’s approach to managing investments and borrowing, with Table 1 providing a balance sheet summary for the end of last year and this year, and Table 2 showing an increase in net investments. It was noted that £0.4m of borrowing had been repaid, reducing the need for further borrowing this year, although additional borrowing is anticipated next year.
Benchmarking data in Table 5 indicated that the Authority’s investment returns are comparable to others in the exercise, with a slight lengthening of investment terms but overall similar rates of return. Members were advised that the Authority remains compliant across all relevant measures.
In response to a question from Councillor Harrison about socially responsible investing, it was explained that the scope for such investments is limited when dealing with cash, as this primarily involves banks and financial institutions rather than equity investments across the whole market. The Authority takes advice from Arlingclose on the responsible investment qualities of financial institutions but ultimately relies on financial services industry standards. Daniel O’Rourke noted that, since the report was published, the Budget speech had been delivered, and a potential cut is expected in Bank of England base rates following the Monetary Policy Committee (MPC) meeting on 18 December.
Councillor Parker queried the income return table, noting that unsecured investments appeared to have lower returns compared to others. Daniel clarified that the figures represent the average interest rate across the portfolio.
RESOLVED
The HIWFRA Audit and Governance Committee noted the Treasury Management Mid-year report for 2025/26 (Appendix A).
Andrew Boutflower, Head of Investments and Borrowing at Hampshire County Council, and Daniel O’Rourke, Corporate Accountant at Hampshire County Council, presented an overview of the Authority’s cash management, including the types of borrowing (short and long term) and investment options available. Members were shown how reserves have decreased due to planned expenditure, including expenditure on capital assets, which impacts on investment balances. The Authority’s capital programme has also meant taking on new borrowing.
The presentation highlighted the Authority’s approach to managing investments and borrowing, with Table 1 providing a balance sheet summary for the end of last year and this year, and Table 2 showing an increase in net investments. It was noted that £0.4m of borrowing had been repaid, reducing the need for further borrowing this year, although additional borrowing is anticipated next year.
Benchmarking data in Table 5 indicated that the Authority’s investment returns are comparable to others in the exercise, with a slight lengthening of investment terms but overall similar rates of return. Members were advised that the Authority remains compliant across all relevant measures.
In response to a question from Councillor Harrison about socially responsible investing, it was explained that the scope for such investments is limited when dealing with cash, as this primarily involves banks and financial institutions rather than equity investments across the whole market. The Authority takes advice from Arlingclose on the responsible investment qualities of financial institutions but ultimately relies on financial services industry standards. Daniel O’Rourke noted that, since the report was published, the Budget speech had been delivered, and a potential cut is expected in Bank of England base rates following the Monetary Policy Committee (MPC) meeting on 18 December.
Councillor Parker queried the income return table, noting that unsecured investments appeared to have lower returns compared to others. Daniel clarified that the figures represent the average interest rate across the portfolio.
RESOLVED
The HIWFRA Audit and Governance Committee noted the Treasury Management Mid-year report for 2025/26 (Appendix A).
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