Issue - meetings

To receive an update on 2025/26 Treasury Management and the 2026/27 Treasury Management Strategy.

The Head of Service: Corporate & Capital Finance presented the Treasury Management Update Report 2025/26 and draft Treasury Management Strategy for 2026/27.

The report set out that the Treasury Management position for 2025/26 up to 31 December 2025 and the proposed Strategy for 2026/27 and that the Committee’s role was to consider the strategy prior to its submission to Full Council.

Members were advised that the report met all statutory reporting requirements and satisfied the requirements of relevant regulations such as the CIPFA Treasury Management Code and the CIPFA Prudential Code for Capital Finance in Local Authorities.

The Committee heard that the Strategy had remained consistent with previous years, focusing on limiting investment exposure, maintaining liquidity, and minimising borrowing costs. Officers highlighted that the Council continued to operate well within prudential indicators and had a strong track record of responsible borrowing and investment. Temporary borrowing and favourable cash flow movements during the year had contributed to a strong financial position.

Members were informed that the Council’s investment portfolio stood at £24.9m, achieving an average return of 4.11% with a strong credit score. Investments made into projects such as NuPlace and the Growth Fund were expected to deliver long?term capital growth and wider financial benefits, including additional council tax and business rates income.

The borrowing strategy adopted by the Council had remained consistent with that in the 2025/26 strategy. Net borrowing stood at £460.4m with an interest charge of 3.8%. During the year, £17.6m of PWLB Loans had matured, with a further £29.9m due before year?end. Temporary loans had been undertaken to meet cash flow requirements, and the authority had taken the opportunity to repay a loan in consultation with treasury advisors. Investments were held mainly in overnight deposits, ensuring funds were readily available and achieved a return.

Section 4.2 of the report set out the 2026/27 Strategy, which aligned with statutory requirements, the Codes of Practice, and the Capital Programme set out within the Medium-Term Financial Strategy. It was anticipated that the Council would need further borrowing during 2026/27 to fund the medium-term capital programme and would adopt a flexible approach to this. Appendix B of the report outlined available borrowing sources, with the Public Works Loan Board remaining the primary option. The Investment Strategy remained focused on minimising investment to reduce counterparty risk and net interest costs. Investment balances would be placed in business reserve instant access and notice accounts, Money Market Funds and short-dated deposits.

The report also included the Minimum Revenue Provision (MRP) statement. Members were informed that under the Local Authorities (Capital Finance) Regulations, where borrowing had been used to finance capital activity, a provision must be made, and recent amendments effective from April 2025 required that no element of the Capital Financing Requirement could be excluded from the calculation.

In line with the Local Government Act 2003, the prudential indicators demonstrated how the authority measured and managed its exposures to treasury risks. These covered capital expenditure and financing plans, the Capital Financing Requirement representing  ...  view the full minutes text for item 27