4 Treasury Management Strategy and Investment Strategy PDF 142 KB
A report recommending the Treasury Management Strategy for 2025/26 and the Investment Strategy for 2025/26, along with additional requirements as outlined in the recommendations.
Cabinet Portfolio Holder – Councillor Peter Butlin
Additional documents:
Minutes:
This report, which recommended the Treasury Management Strategy for 2025/26 and the Investment Strategy for 2025/26, was introduced by Councillor Peter Butlin (Deputy Leader and Portfolio Holder for Finance and Property). He applauded the work undertaken to manage the Council’s investments which had assisted in achieving a balance budget and, moreover, no new external borrowing had been required to finance the capital programme or investment, which meant that the Council had transitioned from an over-borrowed to under-borrowed position. However, the need to borrow was forecast to increase, driven by the planned capital strategy, Warwickshire Property and Development Group (WPDG) and the Warwickshire Investment Fund (WIF) as well as the need to cover the rapidly growing Dedicated Schools Grant High Needs Deficit, which was using up cash reserves.
In response to a question from Councillor Martin Watson, Councillor Butlin advised that there was flexibility to take advantage of the interest rate changes and the methodology used by the Bank of England. Councillor Isobel Seccombe added that the Council’s principles around borrowing were to borrow on the basis that it would bring in capital to reduce the cost of demand (eg through Extracare housing), or support income (through enterprise or business zones) or other priorities around growth.
Resolved:
That Cabinet recommends to Council to:
1. Approve the Treasury Management Strategy for 2025/26 (Appendix 2 to the report) with effect from 1 April 2025;
2. Approve the Investment Strategy for Non Treasury Investments for 2025/26 (Appendix 3 to the report) with effect from 1 April 2025;
3. Require the Executive Director for Resources to ensure that gross borrowing does not exceed the prudential level specified (Appendix 2 to the report, Section 3.16, Table 12 “Authorised Borrowing Limit”);
4. Approve the revised lending limits for the Warwickshire Property Development Group (WPDG) (Appendix 3 to the report, Annex 7);
5. Approve the revised lending limits for the Warwickshire Investment Fund (WIF) (Appendix 3 to the report, Annex 7);
6. Require the Executive Director for Resources to ensure that gross investment in non-Treasury investments does not exceed the prudential levels specified (Appendix 3 to the report, Annex 7);
7. Authorise the Executive Director for Resources to undertake such delegated responsibilities as are set out in Appendix 2 to the report, Annex 7, and Appendix 3 to the report, Section 2.5;
8. Require the Executive Director for Resources to implement the Minimum Revenue Provision (MRP) Policy (Appendix 2, to the report Section 2.13-2.29).