Treasury Management Strategy 2026-27 Draft 25-02-2026

Recommended · This went to the meeting on Thu 5 Mar 2026. What was decided is in that meeting's minutes.

This report sets out the Council's Treasury Management Strategy, Minimum Revenue Provision Policy and Annual Investment Strategy for 2026/27, for scrutiny by the Audit Committee before recommendations go to Cabinet and full Council. p1p429

The Council's capital expenditure plans are expected to require more borrowing in 2026/27 and in future years, including for the Housing Acquisition Programme, street cleansing and waste collection, and roof refurbishment. p66p92p93p94p96

The Council's Capital Financing Requirement, a measure of its underlying borrowing need, has been increasing and is expected to reach about £103.9m by 2028/29. p133p134

No new external borrowing has been taken by the Council in the last 12 months, which instead used internal borrowing to reduce interest costs. p65p189

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• p1Report Template v25.0 Treasury Management Strategy Statement 2026/27 Minimum Revenue Provision Policy Statement and Annual Investment Strategy Introduction
• p65• The Council has not taken on any additional external borrowing in the last 12 months (last external borrowing was £2m on 13/01/2022). The level of capital expenditure for the year is forecast to be greater than the budget however much of the overspend is related to projects that are financed by external grant. Borrowing has remained well within the operational and authorised boundaries.
• p66The Capital expenditure plans of the Council are expected to involve more borrowing in 2026/27 and the years ahead. The borrowing limits proposed in
• p9236. The schemes in the capital programme which are expected to require financing (at least in part) from borrowing in 2026/27 are:
• p93• Housing Acquisition Programme and staffing (10m)
• p94• Energy – Unallocated (2.8m) • Street Cleansing & Waste Collection (2.7m)
• p96• Energy Rating (£1m) • Roof Refurbishment (930k)
• p13356. The second prudential indicator is the Authority’s Capital Financing Requirement (CFR). The CFR is simply the total historic outstanding capital expenditure which has not yet been paid for from either revenue or capital resources. It is essentially a measure of the Council’s underlying borrowing need. Any capital expenditure which has not been funded from grants, revenue, reserves or capital receipts will increase the CFR.
• p13457. The Council has at the time of writing some £63.4m of PWLB debt. To borrow for the remainder of the 2025/26 capital programme i.e. up to the projected level of the CFR (£75.9m) it would need to borrow a further £6m by the end of March 2026. The Capital Financing Requirement has increased over the last few years. It is expected to reach some £103.9m by 2028/29 (based on the capital programme).
• p18981. No new external borrowing has been taken over the last 12 months but instead the council has been utilising internal borrowing to minimise interest costs.
• p429(iii) Audit Committee 1. Scrutinising the Council's Treasury Management Strategy, Investment Strategy and MRP policy, Treasury Management Policy Statement and Treasury Management Practices and making recommendations to Cabinet and Council as appropriate.