Purpose

This report provides Cabinet with a mid-year
review of the council’s Treasury Management Strategy
Statement and Annual Investment Strategy for 2025/26, approved by
council on 27 February 2025, and has been prepared in accordance
with the Chartered Institute of Public Finance Accountancy (CIPFA)
Code of Practice for Treasury Management in the Public Services.
The report also consults the Corporate, Resource Management and
Governance (CRMG) Scrutiny Committee on the development of the
council’s Treasury Management Strategy Statement (TMSS),
Annual Investment Strategy (AIS) and Minimum Revenue Provision
(MRP) Policy for 2026/27, to be considered for approval at the
Cabinet Meeting on 10 February 2026 and the Council Meeting on 26
February 2026

Content

The Cabinet has
considered the Treasury Management Strategy and Annual Investment
Strategy Mid-Year Review Report 2025/26 and has agreed to
recommended that the Council Meeting:-
 
(1) Note the report
and the treasury activity in the first half of the financial
year.
 
(2) Approve and note
the Treasury Management Strategy, Annual Investment Strategy and
Minimum Revenue Provision Policy for 2025/26 approved in February
2025, will continue to be followed considering the forecasts and
conclusions set out in the report.
 
(3) Note the revised
interest rate forecasts for Bank Rate and PWLB rates over the short
and medium-term, which will drive the council’s long-term
borrowing strategies going forward.
 
(4) Note the amendment
to the council’s MRP Policy, which has come about due to the
mandatory adoption of IFRS16 Leases accounting standard for the
2024/25 Statement of Accounts.
 
(5) Consider the
statements with regard to the Treasury Strategy for 2026/27.

Alternative options considered

None.