The Audit and Governance Committee of Newham Council was scheduled to discuss the council's financial management and governance arrangements. Key items on the agenda included the draft Treasury Management Strategy Statement and Annual Investment Strategy, as well as the Year Ahead Forward Plan.

Draft Treasury Management Strategy Statement and Annual Investment Strategy

A significant portion of the meeting was scheduled to be dedicated to reviewing the Draft Treasury Management Strategy Statement (TMSS) and Annual Investment Strategy (AIS) for 2026/27, including an update for the third quarter of 2025/26. This strategy is prepared in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management Code and Prudential Code. The report outlines how the council's funds are to be invested and managed, balancing risk and return.

The report indicated that the prudential indicators and treasury limits were based on the existing approved capital programme. However, major regeneration schemes planned for 2025/26 and 2026/27 would be incorporated once their viability was assessed. The capital programme itself was under review as part of the budget setting process, with potential for changes to existing and new schemes.

The committee was recommended to note and comment on this draft version of the TMSS, which would form part of the Budget Report to Cabinet and Full Council. The council's scheme of delegation grants borrowing powers to the s151 Officer, with individual borrowing transactions delegated to the Corporate Director of Resources within defined thresholds. As of 31 December 2025, the council managed a combined portfolio of £1.355 billion, comprising £91.4 million in treasury investments and £1.446 billion in debt.

The report detailed the estimated treasury budget outturn for 2025/26, showing an anticipated overspend of £2.9 million, which was to be appropriated from the treasury reserve. This reserve was established to manage fluctuations in short-term interest rates. The economic review included forecasts for Bank Rate and Public Works Loans Board (PWLB) certainty rates, with projections suggesting a moderate easing of monetary policy dependent on future data.

The borrowing strategy outlined the need to manage daily cash flow variations and to secure funding for capital plans. The council aimed to balance interest costs of debt with investment income, ensuring liquidity and the ability to meet spending commitments. The report also discussed the potential use of alternative borrowing sources beyond the PWLB, such as local authorities, financial institutions, and quasi-government loans, depending on value for money and specific project requirements.

The treasury investment strategy prioritised security, liquidity, and yield. Investments were primarily held short-term with highly creditworthy counterparties. The report also detailed the council's creditworthiness policy for financial institutions and outlined the types of investment instruments, categorised as 'specified' and 'non-specified' investments, with associated risk criteria and maturity limits.

The report included detailed appendices on Prudential Indicators, Treasury Limits, and Specified and Non-Specified Investments. It also provided a schedule of non-treasury loans to council subsidiary companies, such as Populo Living Limited, Juniper Ventures Limited, and others, detailing principal balances, accrued interest, and commitments.

Year Ahead Forward Plan

The committee was scheduled to note the Year Ahead Forward Plan, which outlines upcoming reports and key activities for the Audit and Governance Committee. This plan detailed reports due for the 2025-26 period, including quarterly updates on internal audit, counter fraud, risk management, contract waivers, savings delivery, and the best value response. It also listed regular reports such as the Treasury Management Strategy Statement, Annual Investment Strategy, and the Annual Complaints Report.

Minutes of the Last Meeting and Actions Log

The committee was asked to confirm the minutes of the previous meeting held on 5 November 2025 as a correct record. Additionally, the current Action Log was presented for noting, detailing actions to be closed at this meeting. The minutes of the previous meeting indicated discussions on the Best Value Response, the work of the Transformation and Improvement Board, and updates from Internal Audit, Counter Fraud, Risk Management, and Human Resources. Several actions were noted as open, requiring further follow-up.

Exclusion of Press and Public

A resolution was scheduled to be considered for the exclusion of the press and public from the meeting for specific items where exempt information, as described in Part I of Schedule 12A to the Local Government Act 1972, was likely to be disclosed. This included the exempt minutes of the last meeting.