Confirmation of the Treasury Management Strategy Statement and annual investment strategy for 2026/27

Report title: Treasury Management Strategy Statement and annual investment strategy 2026/27

Presented by: Councillor Chris Wilkins, Cabinet Member for Finance

Summary:

Cabinet:

1.         Agreed to recommend to Council for consideration and approval the 2026/27 Treasury Management Strategy Statement & Annual Investment Strategy

2.         Agreed to recommend to Council for consideration and approval the revised prudential and treasury indicators set out in Appendix 2 and 3

3.         Agreed to recommend to Council for consideration and approval the operational and authorised borrowing limits set out in tables 5 & 6 of appendix 2 noting the rise in limits to £1,568.2m and £1,638.2m respectively in 2028/29. The increase is as a result of increased borrowing required to finance the planned capital expenidture and EFS.

4.         Noted the impact the capitalisation direction has on the prudential and treasury indicators, increasing the Capital Financing Requirement to £1,498.2m by the 31st March 2029 (set out in table 4 of Appendix 2). This in turn leads to capital financing costs charged to revenue as a result of the EFS increasing from £0.8m per year in 2024/25 to £27.3m in 2028/29.

5.         Noted the non-compliance to the Prudential code in relation to affordability and sustainability (section 3.3.4) as a direct result of the Exceptional Financial Support required and the compounding of the interest and repayment costs required.