Content

Salford City Council - Record of Decision (Cabinet)
 
I Paul
Dennett, City Mayor, in
exercise of the powers contained within the City Council
Constitution do hereby approve the 2026/27 Treasury Management
Strategy, Annual Investment Strategy and Minimum Resource Provision
Policy Statement as set out in this report and refer it for
approval by Full Council on 25th February 2026. In doing so I
approve:

The
Treasury Management Strategy
Annual Investment Strategy for Treasury management and
non-Treasury management investments and specifically:
Approve the policy for the calculation of Minimum Revenue
Provision
Approve the Treasury Management Policy Statement and
Practices

 
Options considered and rejected were:None

Assessment of Risk:
The
monitoring and control of risk underpins treasury management
activities. The main risks are of adverse or unforeseen
fluctuations in interest rates and loss of Capital. Risk control
measures mitigate these risks.

Legal Advice obtained:
The
Treasury Management Strategy, Minimum Revenue Provision Policy and
Annual Investment Strategy set out the Council's policies for
managing its investments which includes giving priority to security
and liquidity. It is effectively the management of the
Council’s cash flows, its banking, money market and capital
market transactions; the effective control of the risks associated
with those activities and the pursuit of optimum performance
consistent with those risks.
The
Local Government Act 2003 (the Act) and supporting regulations
require the Council to “have regard” to “such
guidance as the Secretary of State (for the Department for
Levelling Up, Housing and Communities (DLUHC)) may issue, namely
the Chartered Institute of Public Finance and Accountancy’s
(CIPFA) Prudential Code and to set Prudential and Treasury
Indicators for the next three years to ensure that the
Council’s capital investment plans are affordable, prudent
and sustainable.
The
Act therefore requires the Council to set out its Treasury
Management Strategy at the start of each new financial year and to
prepare an Annual Investment Strategy (as required by Investment
Guidance subsequent to the Act and referred to at section 7 of this
report); this sets out the Council’s policies for maintaining
capital security whilst managing its investments and for giving
priority to the security and liquidity of those investments to
enable it to carry out its business. The borrowing strategy (at
section 6 of the report) aims to minimise the revenue cost of debt
whilst securing the Council from revenue pressures in the event of
interest rate volatility. The strategy covers the relevant
treasury/prudential indicators, the current and projected debt
positions, and the annual investment strategy.
One
revenue consequence of borrowing is the statutory requirement to
set aside an amount for repayment of debt, known as Minimum Revenue
Provision (MRP), which is an annual revenue expense in the
Council’s budget. Regulations require the authority to
determine annually a principle by which MRP will be determined. The
Council’s policy for determining the MRP is set out in
Appendix A to this report.
Financial Advice obtained: Contained
within this report
Procurement Advice obtained: Not
applicable
HR Advice obtained: Not applicable
Climate Change Advice obtained:
When we
make investments, they fully support the ethos of socially
responsible investments. And therefore, where consistent with our
fiduciary responsibilities, we will avoid direct investment in
institutions with material links to environmentally harmful
activities including fossil fuels.
The following documents have been used
to assist the decision process:
2026/27 capital strategy and programme
Contact Officer:  Rachel Rosewell         , Chief
Finance Officer       
           
Telephone number: 07855066602        
The
appropriate scrutiny to call-in the decision is the Overview and
Scrutiny Board

 

Signed:
Paul Dennett         
Dated: 17th February 2026
           
City Mayor
 

For Democratic
Services use only

 

This decision was
published on 18.02.26.                                          

This decision will
come in force at 4.00 p.m. on 25.02.26
unless it is called-in in accordance with the Decision Making
Process Rules.