To agree the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators) for submission to Council on 31 March 2026.

RESOLVED that Cabinet –

a)       notes the contents of the report previously considered by the Portfolio Holder for Corporate Finance and Governance in making his previous executive decision on this matter, as attached as Appendix A1 to report A.9 and the supportive comments from the Resources and Services Overview and Scrutiny Committee; and

b)       agrees that the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators), as attached within Appendix A2 to report A.9, be submitted to Council for its formal approval.

Cabinet considered a report of the Corporate Finance & Governance Portfolio Holder (A.9) which sought its agreement of the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators) for submission to Full Council on 31 March 2026.

Cabinet was reminded that the Local Government Act 2003 and supporting regulations required the Council to set out its treasury strategy for borrowing, and to prepare an Annual Investment Strategy (as required by Investment Guidance subsequent to that Act) that set out the Council’s policies for managing its investments and for giving priority to the security and liquidity of those investments, “having regard” to the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code and the CIPFA Treasury Management Code of Practice. Revised editions of both documents had come into force in 2023/24.

It was reported that the Capital Strategy continued to be combined with the Treasury Strategy into one document, which was required to be updated / approved annually. The proposed Annual Capital and Treasury Strategy for 2026/27 was set out in Appendix A2 to the Portfolio Holder’s report (A.9) and it continued to reflect the various changes set out in the latest Codes mentioned above.

Members were informed that the Capital Strategy element of the combined document covered the various elements surrounding capital investment decisions and the key criteria that investment decisions should be considered against.

The Treasury Strategy element of the combined document covered the various elements that satisfied the requirements of the various codes that governed the borrowing and investment activities of the Council and had been prepared in the light of advice received from the Council’s Treasury advisors and reflected the latest codes and guidance.

Cabinet was made aware that Prudential and Treasury indicators had been included as an Annexe to the combined strategy and had therefore been included within Appendix A2.

Members were advised that, under the Prudential Code, the Council had freedom over capital expenditure if it was prudent, affordable and sustainable. The Prudential Indicators either measured the expected activity or introduced limits upon the activity and reflected the underlying capital appraisal systems and enabled the Council to demonstrate that it was complying with the requirements of the Prudential Code.

Cabinet was reassured that the Council’s investments would be undertaken in accordance with its Treasury Management Practices (TMPs).

Cabinet was informed that, following on from comments made last year, the Strategy now acknowledged potential obligations that would be placed on the Council due to the emerging legislation around Local Government Reorganisation (LGR).

Members were cognisant that the Annual Capital and Treasury Strategy for 2026/27, including Prudential and Treasury Indicators, had been approved by the Corporate Finance and Governance Portfolio Holder on 2 March 2026 for consultation with the Resources and Services Overview and Scrutiny Committee.

The Resources and Services Overview and Scrutiny Committee had duly considered the Strategy at their meeting held on 10 March 2026, and following such consideration, the Committee had resolved:-

“That the Committee notes the Annual Capital and Treasury Strategy 2026/27 and endorses its approval by Cabinet.”

To support the process of ensuring that a Capital and Treasury Strategy for 2026/27 could be considered / approved by Full Council before the start of the 2026/27 financial year:-

It was moved by Councillor Stephenson, seconded by Councillor Barry and:-

RESOLVED that Cabinet –

a)       notes the contents of the report previously considered by the Portfolio Holder for Corporate Finance and Governance in making his previous executive decision on this matter, as attached as Appendix A1 to report A.9 and the supportive comments from the Resources and Services Overview and Scrutiny Committee; and

b)       agrees that the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators), as attached within Appendix A2 to report A.9, be submitted to Council for its formal approval.