Purpose

The Executive Member for
Finance and Governance submitted a report for Executive’s consideration.

 

The report outlined the
Council’s prudential indicators for the financial years 2024/25 – 2026/27 and
set the framework and approved the limits within which the treasury management
operations for this period. It fulfilled key legislative and guidance requirements:

 

a.   
The setting of the prudential indicators in relation to the expected
capital activities and treasury management prudential indicators (included as
treasury indicators) in line with the Chartered Institute of Public Finance and
Accountancy (CIPFA) Treasury Management Code of Practice.

b.   
The treasury management strategy statement which set out how the
Council’s treasury function would support capital decisions taken above, day to
day treasury management activities on service delivery and any limitations on
these, via the treasury prudential indicators.

c.    
The approval of the Council’s Minimum Revenue Provision (MRP) Policy,
which set out how the Council would pay for borrowing to fund capital
investment through the revenue budget each year.

d.   
The key indicator was the Authorised Limit, the maximum amount of debt
the Council could enter into during the financial
year. This amount acted as the legal limit for debt activity.

e.   
The investment strategy which set out the Council’s criteria for
choosing the investment counterparties and limiting exposures to the risk of
loss.

 

The information contained
in the report regarding the Council’s capital expenditure plans, Treasury
Management and Prudential Borrowing activities indicated that they were:

 

·        
Within the statutory framework and consistent with
the relevant codes of practice.

·        
Prudent, affordable, and sustainable.

·        
An integral part of the Council’s Revenue and
Capital Medium Term Financial Plans.

Decision

ORDERD That

































Executive review, endorse and recommend for approval and adoption at
the Council meeting on the budget on 8 March 2024:

 

1)    Approve the Prudential Indicators and
limits for 2024/25 to 2026/27 relating to capital expenditure and treasury
management activity set out in tables 1 to 10 of Appendix 1.

2)    Approve the Treasury Management Strategy
for 2024/25, which included the Annual Investment Strategy for 2024/25 at
Appendix 1 of the report.

3)    Approve the Minimum Revenue Provision
(MRP) Policy for 2024/25 at Appendix 1 of the report.

4)    Approve an Authorised Limit for External
Debt of £372m for the 2024/25 financial year.