Issue - meetings

Treasury Management Strategy Report 2025/26

 

 

Meeting: 22/01/2025 - Overview & Scrutiny Committee (Item 244)

244 Treasury Management Strategy Report 2025/26 pdf icon PDF 78 KB

Treasury Management Strategy Report 2025/26

Executive Summary

This report sets out the Council’s Treasury Management Strategy for the year 2025/26. It sets out details of the Council’s Treasury Management activities and presents a strategy for the prudent investment of the Council’s resources. It also sets out the Council’s approach to the deployment of capital resources in meeting the Council’s overall aims and objectives. 

 

Options considered

 

No other options considered. It is a requirement that the Treasury Management Strategy report must be approved by full Council each year in advance of the new financial year to ensure the Council is compliant with the CIPFA Treasury Management, CIPFA Prudential Codes and guidance issued by the Ministry of Housing, Communities & Local Government (MHCLG).

 

Consultation(s)

Portfolio Holde

Section 151 Officer

 

This report has been prepared with the assistance of Link Treasury Services, the Council’s Treasury Management advisors.

 

Recommendations

 

To recommend to Full Council that the Treasury Management Strategy 2025/26 is approved.

 

Reasons for recommendations

 

Approval by Full Council demonstrates compliance with the Prudential Codes to ensure.

 

·        A flexible investment strategy enabling the Council to respond to changing market conditions.

·        Ensure compliance with CIPFA and MHCLG guidance.

·        Confirming capital resources available for delivery of the Council’s capital programme.

 

It is a requirement that any proposed changes to the prudential indicators are approved by Full Council.

 

Background papers

 

The Council’s Treasury Management Strategy 2024/25.

 

CIPFA Prudential Code (Treasury Management in the Public Services: Code of Practice 2021 Edition).

 

CIPFA Prudential Code (Capital Finance in Local Authorities: Code of Practice 2021 Edition).

 

 

 

Wards affected

All

Cabinet member(s)

Cllr. Lucy Shires

Contact Officer

James Moore

 

Additional documents:

Minutes:

The Portfolio Holder for Finance, Estates & Property Services presented a report that set out (i) the Council’s Treasury Management Strategy for the year 2025/26; (ii) details of the Council’s Treasury Management activities and presents a strategy for the prudent investment of the Council’s resources; and (iii) the Council’s approach to the deployment of capital resources in meeting the Council’s overall aims and objectives. 

 

Questions Responses and Discussion

 

The mains points of the discussion are outlined as follows:

 

The Committee noted that:

 

vthis item is before the committee today because it was not available for the meeting of the Governance, Risk and Audit Committee on the 3rd of December 2024.

vunder the provisions of the Local Government Act 2003, Local Authorities are required to comply with the guidance of the Prudential Code with regard to capital decisions.  It being a requirement that any proposed changes to the 2025/26 prudential indicators are approved by Full Council.  Therefore, it is recommended that Full Council should approve the Treasury Management Strategy 2025/26 to ensure that the Council is compliant with the Prudential Codes.

vin regard to any existing council debt following local government reorganisation, it will be the responsibility of the North Norfolk District Council to manage its budgets. The devolution and local government reorganisation would not change this, and any debt would be transferred to the new body following the reorganisation in Norfolk.

vfinancial scrutiny is an important element of the overall scrutiny process. If the Council’s services are to be run economically, efficiently and effectively, then North Norfolk District Council must make best use of the scarce resources allocated to it. This requires sensible financial planning, transparent processes for resource allocation, robust fiscal controls and strong budgetary and performance monitoring. In all of these areas, financial scrutiny adds value in challenging how the Council makes best use of the public money they receive.  Therefore, it is important as to how the data is presented to the Committee to be sure that councillors have the complete picture.

vNorth Norfolk District Council needs to borrow at favourable rates to fund significant capital projects whilst keeping the overall financial burden manageable by accessing low interest rates, which is crucial given the limited revenue sources and increasing demands for services.

vin regard to devolution and local government reorganisation whilst there are still a lot of unknowns about the overall future shape of local government finances it is assumed that the day-to-day impact on local residents would not increase. However, North Norfolk District Council needs to look prudently at both the immediate and longer-term future safety and prosperity of residents in Norfolk.  Therefore, it was agreed that the Leader of North Norfolk District Council should engage with other district council leaders to agree a collective approach to central government seeking its advice and guidance on the impact of devolution and local government reorganisation on the financial stability of the county of Norfolk.

 

The Chairman Moved and Overview and  ...  view the full minutes text for item 244