Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 19, 2025

Purpose: To approve the Treasury Management Strategy 2025-2026.

Content: That Council be recommended to approve: 1.    The authorised borrowing limit for 2025-2026 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 to be sent at £1,249.72 million (Reference PI 3, Appendix 3 to this report).  The forecast borrowing is below the authorised borrowing limit.   2.    The Treasury Management Strategy Statement 2025-2026 as set out in Appendix 1 to this report.   3.    The Annual Investment Strategy 2025-2026 as set out in Appendix 2 to this report.   4.    The Prudential and Treasury Management Indicators as set out in Appendix 3 to this report.   5.    The Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2024-2025 for the General Fund and Housing Revenue Account (HRA) as set out in Appendix 4 to this report.   6.    The Treasury Management Policy Statement and Treasury Management Practices as set out in Appendix 6 to this report.   7.    That authority be delegated to the Section 151 Officer to amend the Treasury Management Policy and Practices, and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned.  Any amendments would be reported to the Cabinet Member for Resources and Cabinet as appropriate.   8.    That authority be delegated to the Section 151 Officer to lower the minimum sovereign rating in the Annual Investment Strategy, in the event of the UK’s credit rating being downgraded by the third credit rating agency, due to the current economic climate.   That Council be asked to note: 1.    The MRP charge for the financial year 2025-2026 would be £22.8 million for the General Fund and £440,000 for the HRA; it is forecast that the General Fund MRP would increase to £23.1 million and the HRA MRP remain at £440,000 in 2026-2027 (paragraph 2.15 of the report).   2.    Cabinet and Council would receive regular Treasury Management reports during 2025-2026 on performance against the key targets and Prudential and Treasury Management Indicators in the Treasury Management Strategy and Investment Strategy, as set out in paragraph 2.12 and Appendices 2 and 3 to this report.   3.    Consistent with the Our Future Council Guiding Principles the capital programme (General Fund and HRA) would remain under constant review to identify opportunities to generate revenue budget savings.  The outcome of this work would continue to be reported to Cabinet as part of the suite of quarterly financial monitoring reports (paragraphs 2.4 and 2.5 of the report).