Purpose

This comprehensive report sets out the
council’s Treasury Management Strategies for 2026/27 which
are constructed in full compliance with the CIPFA Treasury
Management Code and the council's Treasury Management Policy
Statement and Practices.

Content

The Cabinet has
considered the Treasury Management Strategy and Annual Investment
Strategy Mid-Year Review Report 2026/27 and has agreed to
recommended that the Council Meeting approves:-
 
(1) The Minimum
Revenue Provision Policy for 2026/27.
 
(2) The Capital
Expenditure forecasts and Capital Financing Requirement
projections.
 
(3) The Treasury
Management Strategy 2026/27.
 
(4) The Treasury and
Prudential Indicators and limits 2026/27-2028/29; and
 
(5) The Annual
Investment Strategy 2026/27.

Alternative options considered

When formulating the
2026/27 Treasury Management Strategy, the council undertakes a
comprehensive review of all available treasury options to determine
the optimal, most cost-effective, and least-risk approach to
managing its finances. This involves a meticulous evaluation of
potential actions across the core treasury disciplines. Borrowing
options are assessed to determine the best method for funding
capital expenditure, considering sources such as the Public Works
Loan Board (PWLB), market loans, and prudential borrowing, while
weighing fixed versus variable interest rates and maturity profiles
to mitigate refinancing risk.
 
Concurrently, all
appropriate investment avenues are considered to manage surplus
cash balances, ranging from secure, highly liquid options like
money market funds and other local authorities to term deposits
with approved high-credit-quality banking counterparties, always
prioritising security and liquidity over yield in line with the
Annual Investment Strategy. The strategy formulation process
synthesises these variables, including current economic commentary
and interest rate forecasts, to create a coherent plan that
balances risk, cost, and statutory requirements