Issue - meetings

A report detailing the Council’s Treasury Management Strategy.

The Cabinet received a report of the Assistant Director of Finance which presented the Treasury Management Strategy for 2025/26.

The report outlined the Treasury Management Strategy for 2025/26, the Annual Investment Strategy, Borrowing Strategy, and Prudential Indicators.

The Council is required through regulations supporting the Local Government Act 2003 to ‘have regard to’ the Prudential Code. It is required to produce an annual Treasury Strategy for borrowing and to prepare an Annual Investment Strategy setting out the Council’s policies for managing its investments and for giving priority to security and liquidity of those investments.

The Strategy for 2025/26 covers.

• Economic Update

• Prospects for Interest Rates

• The Current Balance Sheet and Treasury Position

• Liability Benchmark

• The Borrowing Strategy

• Debt Rescheduling

• The Investment Strategy

• Approved Counterparties, risk management and Investment Limits

• Treasury Indicators which limit the treasury risk and activities of the Council

The report therefore outlined the implications and key factors in relation to each of the Capital and Treasury Management issues, referred to above and makes recommendations with regard to the Treasury Management Strategy for 2025/26. The report also includes the most recently available economic background commentary which reflects the position as at December 2024.

The proposed Treasury Management Strategy is presented to Cabinet to enable scrutiny of the report before it receives further consideration by the Council on 6^th March 2025. The Cabinet was advised that the report had been considered at the Audit Committee, at its meeting on 30^th January 2025, where the recommendations, ontained therein were endorsed. The Assistant Director of Finnance reported that any comments from Cabinet will be incorporated into the report that is to be presented to Council.

Options/alternatives considered:

The Cabinet was informed that in order to comply with the CIPFA Code of Practice on Treasury Management, the Cabinet had no option other than to consider and commend the content of the report to Council. Therefore, no options/alternatives were presented.

Resolved:

That the Cabinet after a detailed consideration commends the report to Council, noting in particular:

a.    The Capital Financing Requirement (CFR) Projections as detailed at paragraph 2.4.1 of the report.

b.    The Projected Balance Sheet position as at 31^st March 2025 and future years as detailed at paragraph 2.4.1 of the report.

c.    The Liability Benchmark as detailed at section 2.5 of the report.

d.    The Borrowing Strategy for 2025/26 as detailed at paragraph 2.6 of the report.

e.    The Annual Investment Strategy as detailed at paragraph 2.7, of the report, including counterparties and treasury limits.

f.     The Treasury Management Prudential Indicators at detailed at paragraph 2.8 of the report.