Treasury Management Strategy Statement 2026/27

Recommended · This went to the meeting on Tue 27 Jan 2026. What was decided is in that meeting's minutes.

Cabinet is recommended to ask Council to approve the Treasury Management Strategy Statement, the Annual Investment Strategy, the Prudential and Treasury Indicators for 2026/27 to 2028/29, and the Minimum Revenue Provision Policy Statement for 2025/26 and 2026/27. p5p6p7p8p9

The report estimates the Council's total borrowing need at £121m between 2026/27 and 2028/29, made up of £51m for the capital programme and £70m linked to a capitalisation direction. p22

The report also proposes an increase of £2.7m to the Treasury Management budget in 2026/27, due to falling interest rates and reducing investments. p28

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• p5RECOMMENDATIONS Cabinet is recommended to recommend Council to:
• p61) approve the Treasury Management Strategy Statement for 2026/27;
• p72) approve the Annual Investment Strategy for 2026/27;
• p83) approve the Prudential and Treasury Indicators 2026/27 to 2028/29;
• p94) approve the Minimum Revenue Provision (MRP) Policy Statement for 2025/26 and 2026/27 at Appendix 1 (Section 3).
• p22Borrowing Strategy 1.11 The total level of borrowing need over the next three years (between 2026/27 and 2028/29) is estimated to be £121m, split as £51m capital programme borrowing between 2026/27 and 2028/29 and £70m capitalisation direction in 2026/27.
• p28Revenue impact 1.18 The Treasury Management budget within the MTFP supports the cost of borrowing which includes MRP provision and interest for the capital programme. It is proposed that an increase of £2.7m is made to the Treasury Management budget in 2026/27 due to the current falling interest rate environment and reducing investments. With interest rates expected to normalise at a lower level in the medium term, alongside increasing costs of capital programme borrowing, it is modelled that further increases to the budget will be required in future years. Due to the Council’s challenging revenue budget position, the treasury management portfolio will continue to be reviewed to minimise the borrowing costs and impact on the revenue budget.