Issue - meetings

The Executive Member for Finance and Governance submitted a report for Executive’s consideration.

The report outlined the Council’s prudential indicators for the financial years 2024/25 – 2026/27 and set the framework and approved the limits within which the treasury management operations for this period. It fulfilled key legislative and guidance requirements:

a.    The setting of the prudential indicators in relation to the expected capital activities and treasury management prudential indicators (included as treasury indicators) in line with the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management Code of Practice.

b.    The treasury management strategy statement which set out how the Council’s treasury function would support capital decisions taken above, day to day treasury management activities on service delivery and any limitations on these, via the treasury prudential indicators.

c.     The approval of the Council’s Minimum Revenue Provision (MRP) Policy, which set out how the Council would pay for borrowing to fund capital investment through the revenue budget each year.

d.    The key indicator was the Authorised Limit, the maximum amount of debt the Council could enter into during the financial year. This amount acted as the legal limit for debt activity.

e.    The investment strategy which set out the Council’s criteria for choosing the investment counterparties and limiting exposures to the risk of loss.

The information contained in the report regarding the Council’s capital expenditure plans, Treasury Management and Prudential Borrowing activities indicated that they were:

·         Within the statutory framework and consistent with the relevant codes of practice.

·         Prudent, affordable, and sustainable.

·         An integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

ORDERD That Executive review, endorse and recommend for approval and adoption at the Council meeting on the budget on 8 March 2024:

1)    Approve the Prudential Indicators and limits for 2024/25 to 2026/27 relating to capital expenditure and treasury management activity set out in tables 1 to 10 of Appendix 1.

2)    Approve the Treasury Management Strategy for 2024/25, which included the Annual Investment Strategy for 2024/25 at Appendix 1 of the report.

3)    Approve the Minimum Revenue Provision (MRP) Policy for 2024/25 at Appendix 1 of the report.

4)    Approve an Authorised Limit for External Debt of £372m for the 2024/25 financial year.

OPTIONS

It was a statutory requirement to approve the annual treasury management strategy and set of prudential indicators by the Council.  As a result, there were no alternatives submitted as part of the report.

REASONS

The recommendations requested would fulfil the following for the local authority:

1)    Compliance with the Prudential Code for Capital Finance in Local Authorities and the Department for Levelling Up, Housing & Communities (DLUHC) guidance on investments.

2)    Compliance with the Treasury Management Code of Practice for Local Authorities.

3)    Compliance with the requirements of the Local Government Act 2003 Part 1.

4)    To approve a financial governance framework within which officers will operate when making both borrowing and investment decisions and entering financial transactions.