Our investments and borrowing

Why investment income has been important

Income from our investments – called treasury income – gets added to our other income. Together this amount covers our total expenditure.

Our total expenditure is both:

  • what we spend on services that we must provide by law
  • what we spend to improve the borough and the lives of our residents beyond what is needed by law

The income and expenditure table below shows how, in recent years, we combined our treasury income from investments with our other income funding to cover our total spending on services.

Year Total income from core funding Treasury income (net) Total expenditure Surplus
2018/19 £118.213m £24.436m £132.155m £10.494m
2019/20 £114.202m £34.770m £145.967m £3.005m
2020/21 £107.829m £36.672m £144.505m -£0.004m

When we've had a 'surplus' in our funds – that is, our income has been more than our planned expenditure – we've used it both to:

  • set aside extra money in our reserves, for use in exceptional circumstances
  • fund one-off activities – such as buying equipment to maintain our green spaces – for which we would otherwise have to borrow money

Without investment income during these years, we would have had to reduce services. The charts below represent the figures in the income and expenditure table.