Decision details

The Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2021 Edition (the CIPFA Code) requires the Authority to approve a treasury management strategy before the start of each financial year.

This report fulfils the Council’s legal obligation under the Local Government Act to have regard to the CIPFA Code.

Approved at Council 25^th February 2025.

(1)  To recommend the actions proposed within the Treasury Management Strategy Statement (Appendix 1 of the report) to Council.

(2)  To note the Treasury Management Indicators detailed in Appendix 1 of the report.

The Local Government Act 2003 requires the Council to ‘have regard to’ the Prudential Code and to set Treasury Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable.

The Act therefore requires the Council to set out its treasury strategy for borrowing and to prepare a Treasury Management Strategy; this sets out the Council’s policies for managing its investments and for giving priority to the security and liquidity of those investments.

The suggested strategy for 2025/26 is based on the Treasury Officers’ views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury advisor, Arlingclose.

The Executive Director - Resources, having consulted the Cabinet Member for Resources, believes that the above strategy represents an appropriate balance between risk management and cost effectiveness.  Some alternative strategies, with their financial and risk management implications, are the table below.