Issue - meetings

To present the Treasury Management Strategy for 2026/27

Cabinet Member for Finance, Corporate Services and Sustainability to report.

The Cabinet considered a report of the Director of Finance, which presented the Treasury Management Strategy for 2026/27.

The report outlined the Treasury Management Strategy for 2026/27, 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. The report was 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 2026/27 covers.

a.    Economic Update.

b.    Prospects for Interest Rates

c.     The Current Balance Sheet and Treasury Position

d.    Liability Benchmark

e.    The Borrowing Strategy

f.      Debt Rescheduling

g.    The Investment Strategy

h.    Approved Counterparties, risk management and Investment Limits

i.      Treasury Indicators which limit the treasury risk and activities of the Council.

The report outlined the implications and key factors in relation to each of the above Capital and Treasury Management issues and made recommendations regarding the Treasury Management Strategy for 2026/27.

The report includes the most recently available economic background commentary which reflects the position as at December 2025.

The proposed Treasury Management Strategy was presented to and considered by the Audit Committee at its meeting of 14^th January 2025. Following their review and scrutiny the Audit Committee was content to commend to this meeting of the Cabinet for consideration and/or comment before presentation to Council. It was reported that any comments from Cabinet will be incorporated into the reports presented to Council, on 4^th March 2026.

 Options/Alternatives considered:

In accordance with the CIPFA Code of Practice on Treasury Management, the Cabinet have no alternative to considering and commending the submitted report to the Council, at its meeting on 4^th March 2026. Therefore, no options or alternatives were presented.

Resolved:

That the Cabinet commends the following matters, detailed in the submitted report, to the Council, at its meeting on 4^th March 2026:

1.     The Capital Financing Requirement (CFR) Projections, as detailed in paragraph 2.4.1, of the submitted report.

2.    The Projected Balance Sheet position, by 31^st March 2026 and future years as detailed in paragraph 2.4.1, of the submitted report.

3.    The Liability Benchmark as detailed in paragraph 2.5, of the submitted report.

4.    The Borrowing Strategy for 2025/26 as detailed in paragraph 2.6, of the submitted report.

5.    The Annual Treasury Investment Strategy as detailed in paragraph 2.7, of the submitted report, including counterparties and treasury limits.

6.    The Treasury Management Prudential Indicators as detailed in paragraph 2.8, of the submitted report.