Norfolk County Council saw its cash balances fall sharply during 2025-26, with the position only rescued by a £30 million external funding payment received at the end of March 2026, which lifted the closing cash balance to £67 million.

The payment related to a major infrastructure project involving the relocation of a national grid line in West Norfolk. It arrived at the end of the financial year and was paid out to suppliers in April 2026.

The council borrowed £96.5 million during 2025-26 solely to support capital spending requirements. Officers told the Audit and Governance Committee on 28 April that the council does not borrow in advance of need and uses internal cash reserves first wherever possible.

The council's cash position was further affected by the Designated Schools Grant (DSG), which has an ongoing deficit that weighs on balances — though officers were clear the borrowing was not used to fund the DSG itself.

Both internal and external auditors reviewed the borrowing position and raised no concerns, with officers describing the level as proportionate and acceptable. Committee members noted that older borrowing from long-term capital projects would gradually reduce as repayment periods came to an end.

The Corporate Accounting Manager confirmed that all prudential indicators — the financial limits councils must stay within — had been met for the year, following adjustments made in 2025 to account for new accounting rules under IFRS 16.

The committee approved the treasury management report, agreeing that appropriate governance and risk controls were in place.