To enable Council to adopt the annual Capital and Treasury Strategy, as required by the Council’s Policy Framework.

It was reported that, at its meeting held on 20 March 2026 (minute 127 referred), the Cabinet had considered a report of the report of the Corporate Finance and Governance Portfolio Holder (A.9) which had sought Cabinet’s agreement of the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators) for submission to this meeting of Full Council.

Cabinet had been reminded at their meeting 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.

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 had been set out in Appendix A2 to the Portfolio Holder’s report (A.9) and it had continued to reflect the various changes set out in the latest Codes mentioned above.

Members of the Cabinet had been informed that the Capital Strategy element of the combined document had 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 had 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 had reflected the latest codes and guidance.

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

Cabinet had been 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). 

Cabinet had, inter alia, “RESOLVED that the Annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators) be recommended to Full Council for its formal approval.”

A copy of the published Corporate Finance & Governance Portfolio Holder’s report (and its appendix) to the Cabinet meeting held on 20 March 2026 was attached to the reference report (A.2).

Having duly considered the reference report from Cabinet (A.2):-

It was moved by Councillor M Stephenson, seconded by Councillor I J Henderson and:-

RESOLVED that the annual Capital and Treasury Strategy for 2026/27 (including Prudential and Treasury Indicators), as set out in Appendix A to the reference report (A.2), be approved and formally adopted.