The Finance Manager introduced the report and stated that the Council’s Treasury Management Strategy Statement (TMSS), attached at Appendix A to the report, complied with the CIPFA code.

It was stated that: 

·  The TMSS included ensuring sufficient liquidity to fund the capital programme, meet the Council’s liabilities, examine longer-term borrowing across periods of more than a year with the limit in doing so increased from £2 million to £5 million, assess in-year capital spend and obtain the best rates for the Council if further borrowing was required;

·  The Annual Investment Strategy outlined investment criteria, following security, liquidity then yield priorities. The Council’s current investments totalled £18.185 million, with further details outlined in Appendix C to the report. The Council would be drawing on £40 million in funding from Aviva in February 2024 which would be held as a short term cash investment until required;

·  Further borrowing may be required from 2024/25 or 2025/26 onwards, as displayed in the Liability Benchmark Graph within the report. Long and short term borrowing totalled £10 million, divided equally between the Public Works Loan Board and other Local Authorities; the latter would be paid off first as short term funding was more expensive to the Council; and

·  The Capital Strategy was contained within Appendix B to the report, with the capital programme totalling £433 million over the next 10 years. The Council would need to commit to £259 million in prudential borrowing to fund the programme, and was not expected to exceed the Capital Finance Requirement, which would reach £369 million in supporting the programme.

During the discussion, the importance of securing borrowing at suitable interest rates and providing details of the capital programme were highlighted. In response to a question, the Head of Finance explained the programme of proposed property purchases to mitigate the need for costly temporary accommodation. 

RESOLVED: That

1.  The Treasury Management Strategy for 2024/25 attached at Appendix A to the report, be agreed and recommended to Council for adoption, subject to any amendments arising from consideration of the Capital Programme by Cabinet at its meeting on 7 February 2024; and

2.  The Capital Strategy for 2024/25 attached as Appendix B to the report, be agreed and recommended to Council for adoption.