This report sets out the Treasury Management Strategy Statement, Minimum Revenue Provision Policy and Annual Investment Strategy for recommendation to Full Council.

The Committee received a report setting out a Treasury Management Strategy for endorsement and recommendation to Council.  The Strategy required approval before the start of the new financial year in accordance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management in the Public Services: Code of Practice 2021 and the CIPFA Prudential Code for capital finance in local authorities (2021).  The Treasury Management Strategy Statement (TMSS) was attached to the report at Appendix 1.

The report explained that the Treasury Management Strategy Statement (TMSS) set out the parameters for the Council’s planned treasury activity during 2025/26 under which the Council’s Treasury Team would manage day to day activity, and that the successful identification, monitoring and control of financial risk were central to the Strategy.  Included in the TMSS alongside the Treasury Management Strategy were Capital Prudential Indicators, a Minimum Revenue Provision (MRP) Policy Statement, a Borrowing Strategy, and an Annual Investment Strategy.

The CIPFA 2021 Prudential and Treasury Management Code also required the Council to prepare a Capital Strategy report which set out the Council’s capital requirements arising from policy objectives, as well as the associated governance procedures and risk appetite.  The Capital Strategy included non-treasury investments and was reported separately from the TMSS (Minute 62 above refers).  The CIPFA Treasury Management Code 2021 further broke down non-treasury investment into: Investments for service purposes – taken or held primarily for the provision and purpose of delivering public services (including housing, regeneration, and local infrastructure), or in support of joint working with others to deliver such services;  Investment for commercial purposes - taken or held primarily for financial return and were not linked to treasury management activity or directly part of delivering services.

Items 61-63 were considered together for recommendation to the Council meeting on 25 February 2025.

Resolved –

            That Council be recommended to approve:

a)    the Treasury Management Strategy Statement for 2025/26 as set out in Appendix 1, Section 2;

b)   the Capital Prudential Indicators as set out in Appendix 1, Section 3;

c)    the Minimum Revenue Provision (MRP) Policy for 2025/26 as set out in Appendix 1 Section 4;

d)   the Borrowing Strategy for 2025/26 as set out in Appendix 1, Section 5;

e)    the Annual Investment Strategy for 2025/26 as set out in Appendix 1, Section 6;

f)     the Prudential and Treasury Management Indicators as set out in Appendix 1, Annex 1.