Agenda item

The Group Director of Operations submitted a report (previously circulated) for Members of this Audit Committee to review and scrutinise the Prudential Indicators and Limits for 2024/25 to 2026/27 relating to capital expenditure and Treasury Management activity; a policy statement relating to the Minimum Revenue Provision; the authorised limit; and the Treasury Management Strategy 2024/25, which includes the Annual Investment Strategy for 2024/25, prior to approval and adoption by Cabinet and Council.

The submitted report outlined the Council’s Prudential Indicators for 2024/25- 2026/27 and set out the expected treasury operations for this period and it was reported that the Council’s capital expenditure plans, Treasury Management and Prudential Borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice; prudent, affordable and sustainable; and were an integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

The submitted report also included a mid-year Treasury Management progress report to update members on the capital position, amending prudential indicators as necessary, and whether the treasury function was meeting the strategy or whether any policies required revision.

It was reported that the Treasury Management Strategy for 2024/25 will cover two main areas, Capital Issues and Treasury Management Issues and a summary of the key prudential indicators and limits were also contained within the submitted report; and these elements covered the requirements of the Local Government Act 2003, the CIPFA Prudential Code, Ministry of Housing, Communities and Local Government (MHCLG) Minimum Revenue Provision (MRP) Guidance, the CIPFA Treasury Management Code and the MHCLG Investment Guidance.

It was also highlighted that the CIPFA Prudential code requires the responsible officer to ensure that Members with responsibility for treasury management receive adequate training in treasury management and training was undertaken by a number of Members during a session held in March 2023 with a further session being held in January 2024.

Discussion ensued on the role of Link Group Treasury Solutions, as the Council’s external Treasury Management Advisers and the current situation in relation to the property fund investments, particularly in relation to Lothbury.

It was reported that, in line with previously agreed delegations, the Treasury Management Strategy gave Officers flexibility to manage the day to day operations of the investments, including the property funds to maximise returns for the Council and that Officers would continue to use this delegation to manage its options regarding Lothbury and report back to Members as, and when required.

RESOLVED - That this Audit Committee is satisfied with the Prudential Indicators and Treasury Management Strategy for 2024/25 to 2026/27, the Minimum Revenue Provision statement, the Treasury Management Strategy 2024/25 to 2026/27 and the Annual Investment Strategy 2024/25, as presented in the submitted report, and that the report be forwarded to Cabinet for its onward referral to Council for consideration.