Agenda item

That it be noted that following recommendation regarding the Treasury Management Strategy 2024/25 would formally considered by the Audit & Corporate Governance Committee on 29th February 2024:

"Audit & Corporate Governance Committee is asked to recommend to Council the following:

a.  Approve the Treasury Management Strategy (TMS) for 2024/25 at Appendix 1 including:

  i.  the Annual Investment Strategy for 2024/25 (within Appendix 1 page 23)

  ii.  the Annual Borrowing Strategy for 2024/25 (within Appendix 1 page 13)

  iii.  Minimum Revenue Provision Policy Statement for 2024/25 (within Appendix 1 page 33)

  iv.  the Prudential Indicators for the period 2024/25 to 2026/27 (Appendix 1 page 18)

  v.  the Capital Strategy for the 2024/25 (Appendix 1 page 17)"

The Cabinet noted that an updated version of the TMS would be provided to the Audit & Corporate Governance Committee which included the following additional indicators be incorporated within the Treasury Management Strategy.

·  A £4m minimum level of HRA general reserve

·  A £5m minimum level of Major Repairs Reserves

·  A 1.25 times HRA interest cover ratio

The Lead Member for Finance, Council Assets, Procurement and Revenues & Benefits introduced a report on the Treasury Management Strategy 2024/25 which included the investment strategy, borrowing and debt reduction strategy, Minimum Revenue Provision (MRP) policy, the prudential indicators and the Capital Strategy 2024/25.

It was noted that the Audit & Corporate Governance Committee would be the Member body that considered the strategy in detail and be asked to recommend approval to full Council.  However, the Cabinet was being asked to consider and note the strategy as part of the wider budget papers.  Since publication of the report to Cabinet, it was noted that additional indicators had been incorporated within the Treasury Management Strategy that would be considered by the Audit & Corporate Governance Committee.  In summary these were:

·  A £4m minimum level of HRA general reserve.

·  A £5m minimum level of Major Repairs Reserves.

·  A 1.25 times HRA interest cover ratio.

The Leader drew attention to the fact that the strategy set out how the Council would reduce borrowing over time to make it sustainable and affordable.  The Cabinet was committed to returning the authority to sound financial management and the Treasury Management Strategy was an important part of that approach.  The Cabinet agreed to note the strategy and the updates that would be incorporated into the final version to be considered by the Audit & Corporate Governance Committee on 29^th February 2024 and full Council on 7^th March 2024.

Resolved –

(a)  That it be noted that the Treasury Management Strategy 2024/25 would considered by the Audit & Corporate Governance Committee on 29th February 2024 with the following recommendation:

"Audit & Corporate Governance Committee is asked to recommend to Council the following:

a.  Approve the Treasury Management Strategy (TMS) for 2024/25 at Appendix 1 including:

  i.  the Annual Investment Strategy for 2024/25 (within Appendix 1 page 23)

  ii.  the Annual Borrowing Strategy for 2024/25 (within Appendix 1 page 13)

  iii.  Minimum Revenue Provision Policy Statement for 2024/25 (within Appendix 1 page 33)

  iv.  the Prudential Indicators for the period 2024/25 to 2026/27 (Appendix 1 page 18)

  v.  the Capital Strategy for the 2024/25 (Appendix 1 page 17)"

(b)  That it be noted that an updated version of the TMS would be provided to the Audit & Corporate Governance Committee prior to 29^th February 2024, which included the following additional indicators be incorporated within the Treasury Management Strategy.

·  A £4m minimum level of HRA general reserve

·  A £5m minimum level of Major Repairs Reserves

·  A 1.25 times HRA interest cover ratio