Purpose

Confirmation of the Treasury Management
Strategy Statement and annual investment strategy for 2026/27

Decision

Report title: Treasury Management Strategy
Statement and annual investment strategy 2026/27
 
Presented by: Councillor Chris Wilkins,
Cabinet Member for Finance
 
Summary:
 
 
Cabinet:
 
1.        
Agreed to recommend to Council for consideration and
approval the 2026/27 Treasury Management Strategy Statement &
Annual Investment Strategy
 
2.        
Agreed to recommend to Council for consideration and
approval the revised prudential and treasury indicators set out in
Appendix 2 and 3
 
3.        
Agreed to recommend to Council for consideration and
approval the operational and authorised borrowing limits set out in
tables 5 & 6 of appendix 2 noting the rise in limits to
£1,568.2m and £1,638.2m respectively in 2028/29. The
increase is as a result of increased borrowing required to finance
the planned capital expenidture and
EFS.
 
4.        
Noted the impact the capitalisation direction has on the
prudential and treasury indicators, increasing the Capital
Financing Requirement to £1,498.2m by the 31st March 2029
(set out in table 4 of Appendix 2). This in turn leads to capital
financing costs charged to revenue as a result of the EFS
increasing from £0.8m per year in 2024/25 to £27.3m in
2028/29.
 
5.        
Noted the non-compliance to the Prudential code in relation
to affordability and sustainability (section 3.3.4) as a direct
result of the Exceptional Financial Support required and the
compounding of the interest and repayment costs required.