Norfolk County Council borrowed £96.5 million during 2025/26, all of it tied to long-term capital projects rather than day-to-day spending, finance officers told the Audit and Governance Committee on 28 April.

The reassurance came after the committee chairman asked for clarity on the council's borrowing position following public commentary about its financial management. Officers confirmed the council does not borrow in advance of need and uses internal cash reserves first wherever possible.

The Designated Schools Grant (DSG) — a ring-fenced education funding stream that has caused financial pressure for many councils — had influenced cash balance levels, but officers were clear it had not driven borrowing decisions.

A committee member noted that borrowing had actually fallen in 2023/24 and pointed out that long-term capital borrowing is gradually reducing as older schemes reach the end of their repayment terms.

Officers said both internal and external auditors had reviewed the position and raised no concerns, describing the borrowing as proportionate and in line with what would be expected for a council of Norfolk's size.

The council operates under rules requiring it to set prudential indicators — limits and targets that govern how much it can borrow. Officers confirmed all indicators had been met for the year, following adjustments made in 2025 to account for new accounting standards under IFRS 16.

Treasury management activity is monitored through regular reports to Cabinet and Full Council throughout the year.