Purpose

To approve the Treasury Management Strategy
2026-2027.

Content

That Council be recommended to approve:

1.     
The authorised borrowing limit for 2026-2027 to support the capital
strategy as required under Section 3(1) of the Local Government Act
2003 to be set at £1,295.15 million (Reference PI 3, Appendix
3 to the report). The forecast borrowing is below the authorised
borrowing limit.

2.     
The Treasury Management Strategy Statement 2026-2027 as set out in
Appendix 1 to the report.
 

3.     
The Annual Investment Strategy 2026-2027 as set out in Appendix 2
to the report.
 

4.     
The Prudential and Treasury Management Indicators as set out in
Appendix 3 to the report.
 

5.     
The Annual Minimum Revenue Provision (MRP) Statement setting out
the method used to calculate MRP for 2026-2027 for the General Fund
and Housing Revenue Account (HRA) as set out in Appendix 4 to the
report.
 

6.     
The Treasury Management Policy Statement and Treasury Management
Practices as set out in Appendix 6 to the report.
 

7.     
That authority be delegated to the Section 151 Officer to amend the
Treasury Management Policy and Practices, and any corresponding
changes required to the Treasury Management Strategy, the
Prudential and Treasury Management Indicators, the Investment
Strategy and the Annual MRP Statement to ensure they remain
aligned. Any amendments would be reported to the Cabinet Member for
Resources and Cabinet as appropriate.
 

8.     
That authority be delegated to the Section 151 Officer to lower the
minimum sovereign rating in the Annual Investment Strategy, in the
event of the UK’s credit rating being downgraded by the third
credit rating agency, due to the current economic climate.
 
That Council be recommended to
note:

1.     
That the MRP charge for the financial year 2026-2027 would be
£22.4 million for the General Fund and £440,000 for the
HRA; it is forecast that the General Fund MRP would increase to
£24.5 million and the HRA MRP remain at £440,000 in
2027-2028 (paragraph 2.15 of the report).

2.     
That Cabinet and Council would receive regular Treasury Management
reports during 2026-2027 on performance against the key targets and
Prudential and Treasury Management Indicators in the Treasury
Management Strategy and Investment Strategy, as set out in
paragraph 2.12 and Appendices 2 and 3 to the report.