Issue - meetings

Purpose of Report

To review and to recommend to the Council the adoption of the:

·       Treasury Management Strategy 2025/26;

·       Prudential Indicators;

·       Minimum Revenue Provision (MRP) Policy;

·       Treasury Management Practices (TMP’s)

Decision

That the Council be recommended:

(a)       To approve the Treasury Management Strategy 2025/26, including the Prudential Indicators;

(b)    To approve the Minimum Revenue Position Policy 2024/25;

(c)    To approve the Treasury Management Practices

Alternative Options Considered and Rejected

None.

Reasons for the Decision

The report set out the operation of the Council’s prudential indicators, its treasury function and its likely activities for the forthcoming year which incorporated the following four key elements:

·       Prudential and Treasury Indicators – the reporting of the statutory prudential indicators together with local indicators, in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities and the CIPFA Treasury Management Code of Practice.

·       Minimum Revenue Provision (MRP) Statement – the reporting of the MRP policy which set out how the Council would pay for capital assets through revenue each year (as required by regulation under the Local Government Act 2003).

·       Treasury Management Strategy – which set out how the Council’s treasury activity would support capital decisions, the day-to-day treasury management and the limitations on activity through treasury prudential indicators. The key indicator was the Authorised Limit, the maximum amount of debt the Council could afford in the short term, but which would not be sustainable in the longer term. This was the Authorised Borrowing Limit required by s3 of the Local Government Act 2003 and was in accordance with the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code.

·       Investment Strategy – this was included within the Treasury Management Strategy and set out the criteria for choosing investment counterparties and limiting exposure to the risk of loss. It was reported annually (in accordance with Department for Levelling Up, Housing and Communities (DLUHC) Investment Guidance).

This report had been considered by Audit Committee on 4 February 2025.