Issue - meetings

To consider a report by the Corporate Director - Finance and Resources on the 2025/26 Treasury Management, Capital and Investment Strategies prior to their consideration by Council.

Executive Councillor: B Mickelburgh.

The Cabinet has recommended to Council the approval of the Treasury Management, Capital and Investment Strategies (as outlined in Appendices 1, 2 and 3 of the submitted report) and the Minimum Revenue Provision Statement and the Flexible Use of Capital Receipts Strategy (as outlined in Appendices 4 and 5 of the submitted report).

A report by the Corporate Director – Finance and Resources was submitted (a copy of which is appended in the Minute Book) providing strategic guidance on how the Council conducts its Treasury Management, Capital and Investment activity.

In introducing the report, the Corporate Director – Finance and Resources reminded the Cabinet of the requirements for Council to approve the various strategies and statements under the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management in the Public Services: Code of Practice designed to protect the Council’s cash and income.

The Executive Councillor for Finance and Resources presented the views of the Overview and Scrutiny Panel (Performance & Growth), drawing particular attention to the discussion which had been held in relation to the Bank of England’s lending and investing rates. He advised that he had since had a discussion with the Council’s Financial and Treasury Accountant and that a prudent approach had been adopted in this respect rather than being overly optimistic with these rates.

Following a question which had been raised by the Executive Councillor for Climate, Transformation and Workforce in relation to investing via Environmental, Social and Governance (ESG) considerations, the Executive Councillor for Finance and Resources reported that investment options through the Debt Management Office were not only guaranteeing returns for the Council but this was also enabling financial support to the Council’s peers and colleagues. It was however reported that once the budget setting process had been finalised, the Executive Councillor for Finance and Resources would be working with CIPFA to further review ESG considerations.

Whereupon, it was

RESOLVED

that the Cabinet recommend to Council the approval of the Treasury Management, Capital and Investment Strategies (as outlined in Appendices 1, 2 and 3 of the report now submitted) and the Minimum Revenue Provision Statement and the Flexible Use of Capital Receipts Strategy (as outlined in Appendices 4 and 5 of the report now submitted).

At 7:23pm, Councillor S A Howell vacated her seat and left the room during consideration of the next item.

The Panel is invited to comment on the 2025/26 Treasury Management, Capital and Investment Strategies.

Executive Cllr: B Mickelburgh

By means of a report by the Corporate Director for Finance and Resources (a copy of which was appended in the Minute Book), the 2025/26 Treasury Management, Capital and Investment Strategies report was presented to the Panel.

Following a question, which related to both the 2025/26 Revenue Budget and Medium Term Financial Strategy (2026/27 to 2029/30) Including the Capital Programme and the 2025/26 Treasury Management, Capital and Investment Strategies agenda items, the Panel heard that the rates forecast by the treasury advisors were the Bank of England (BOE) lending rates and that investing rates were unlikely to reach as high as this. It was also noted that there was a risk that investing rates may fall faster than the BOE lending rate, since it was some years since rates had fallen from the current level, there is uncertainty about the relationship between fall in BOE rate and the fall in investing rates, which may be steeper.

In response to a question relating to the development of the Commercial Investment Strategy, it was confirmed to the Panel that work by CIPFA was underway and that this would also include work to support Local Government Reform within this. The Panel heard that workshops would follow the completion of this work, with an update on progress being anticipated by quarter one of the coming financial year.

Following this, it was

RESOLVED

that the Panel had no further comments or discussion to add and that this would be added to the Cabinet report in order for an informed decision to be made on the report recommendations.