Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 10, 2026

Purpose: This comprehensive report sets out the council’s Treasury Management Strategies for 2026/27 which are constructed in full compliance with the CIPFA Treasury Management Code and the council's Treasury Management Policy Statement and Practices.

Content: The Cabinet has considered the Treasury Management Strategy and Annual Investment Strategy Mid-Year Review Report 2026/27 and has agreed to recommended that the Council Meeting approves:-   (1) The Minimum Revenue Provision Policy for 2026/27.   (2) The Capital Expenditure forecasts and Capital Financing Requirement projections.   (3) The Treasury Management Strategy 2026/27.   (4) The Treasury and Prudential Indicators and limits 2026/27-2028/29; and   (5) The Annual Investment Strategy 2026/27.

Alternative options considered: When formulating the 2026/27 Treasury Management Strategy, the council undertakes a comprehensive review of all available treasury options to determine the optimal, most cost-effective, and least-risk approach to managing its finances. This involves a meticulous evaluation of potential actions across the core treasury disciplines. Borrowing options are assessed to determine the best method for funding capital expenditure, considering sources such as the Public Works Loan Board (PWLB), market loans, and prudential borrowing, while weighing fixed versus variable interest rates and maturity profiles to mitigate refinancing risk.   Concurrently, all appropriate investment avenues are considered to manage surplus cash balances, ranging from secure, highly liquid options like money market funds and other local authorities to term deposits with approved high-credit-quality banking counterparties, always prioritising security and liquidity over yield in line with the Annual Investment Strategy. The strategy formulation process synthesises these variables, including current economic commentary and interest rate forecasts, to create a coherent plan that balances risk, cost, and statutory requirements