Decision details

 (Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Finance Officer that presented the draft Treasury Management Strategy and associated documents for 2026/27 and provided an opportunity for consideration and comment ahead of formal presentation to Full Council 25 February 2026 for approval.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinet may put forward alternative proposals or amendments to the proposed Strategy ahead of consideration by Full Council, but these would have to be considered in light of legislative, professional, and economic factors, and importantly, any alternative views regarding the Council’s risk appetite. As such no further options analysis is available currently.

Furthermore, the Strategy must fit with other aspects of Cabinet’s budget proposals, such as deposit interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators. There are no options available regarding other components of the overall framework.

The officer preferred option was to approve the framework as attached to the report, allowing for any amendments being made under delegated authority prior to referral to Council.

Thereport addressedthe actionsrequired tocomplete thebudget settingprocess for Treasury Management, and for updating the Council’s associated financial strategy. This was based on the Council continuing to have a comparatively low risk appetite regarding the security and liquidity of investments particularly, but recognising that some flexibility should help improve returns, whilst still effectively mitigating risk. It was stressed that in terms of treasury activity, there is no risk-free approach. It was felt, however, that the measures set out in the report provide a fit for purpose framework within which to work, pending any update during the course of next year.

If Cabinet, or Budget Council changes its Capital Programme from that which is proposed in this report then this would require a change in the prudential indicators which are part of the Treasury Management Strategy.

Councillor Hamilton-Cox proposed, seconded by Councillor Riches:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)               That Cabinet recommends for approval to Budget Council the Treasury Management Strategy 2026/27, Appendices A to C to the report.

(2)                      That delegated authority be given to the S151 Officer, in consultation with the Portfolio Holder for Finance & Property to amend changes in the prudential indicators should Cabinet or Full Council make any revisions to the Capital Programme.

Officer responsible for effecting the decision:

Chief Officer Resources

Reasons for making the decision: