Decision details

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Finance Officer that sought Cabinet’s consideration of various matters in connection with the Treasury Management Mid-Year Review 2025/26.

The report was for consideration and progressing to Budget and Performance Panel and Full Council and therefore no alternative options were put forward.  The Mid-Year Review (Appendix A to the report) set out the performance of treasury operations for the first six months of the 2025/26 financial year in terms of long and short-term borrowing, investment activities and relevant borrowing limits and prudential indicators. Under CIPFA’s Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code) it is a requirement that an information report on these matters be presented to Cabinet and full Council.

The Cabinet Member with Special Responsibility drew Cabinet’s attention to the 151 comments:  As part of the work to address the “Community concern over bombardment of Gaza and reaffirming Lancaster City Council’s commitment to human rights and International Law” motion presented to Council 24th September 2025, this report requests an increase in sovereign limits from £6M to £12M. Whilst this increase will allow wider access to, and use of Environmental, Social and Governance (ESG) based investment funds, it does significantly increase the level of risk to the Council. As approval of the Treasury Management Strategy is a function of Full Council Members must be satisfied that the increase in risk is balanced against the benefits of investment in ESG funds.

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

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

Councillors then voted:-

Resolved unanimously:

(1)            That Cabinet notes the report, the treasury activity and performance against the prudential indicators.

(2)            That Cabinet recommend approval of changes to the investment counterparty criteria to full Council.

(3)            That Cabinet recommend approval of change to the sovereign limit to full Council.

(4)            That the Mid-Year Review 2025/26 be forwarded on to Budget & Performance Panel and Full Council for consideration in accordance with CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code) issued under the Local Government Act 2003.

Officer responsible for effecting the decision:

Chief Officer Resources

Reasons for making the decision:

Treasury Management forms part of the Councils budget framework. Consideration of Treasury Management Mid-Year Review and presentation to Full Council will ensure the Council complies with CIPFA’s Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).