Issue - meetings
Annual Treasury Management Strategy and Annual Non-Treasury Investment Strategy 2024/25
Meeting: 25/01/2024 - Audit and Governance Committee (Item 256)
256 Annual Treasury Management Strategy and Annual Non-Treasury Investment Strategy 2024/25 
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Summary/Purpose
The Council is required to approve a Treasury Management Strategy and Non-Treasury Investment Strategy (Investment Strategy) for 2024/25 before 01 April 2024.
The attached Treasury Management Strategy Statement (TMSS) for 2024/25 (Appendix 1) and Non-Treasury Investment Strategy (Appendix 2) is prepared in accordance with the “Prudential Code” and the “Treasury Management Code of Practice” (2021 Editions), and the former Ministry of Housing, Communities and Local Government (MHCLG) revised guidance on Local Government Investments
Recommendation
That the Audit and Governance Committee resolves to:
1. Consider the draft Treasury Management and Non-Treasury Investment Strategy for 2024/25 and provides feedback to the Cabinet and Council for consideration as part of the Council’s budget setting process
Additional documents:
Minutes:
The Deputy Chief Executive introduced the item. The Council was required to approve a Treasury Management Strategy and Non-Treasury Investment Strategy (Investment Strategy) for 2024/25, the Committee was invited to provide feedback on it ahead of its consideration by Cabinet and Council.
The Deputy Chief Executive stated that the item was concerned with the Council’s management of its cash funds, in line with CIPFA codes on both Treasury Management and Capital Finance.
The Members of the Committee commended the quality of the report.
Members did not recommend any changes to the report, but discussed various aspects of the Council’s Treasury Management Strategy.
There was a discussion around the potential impact of fluctuating interest rates on the Council's investment strategy. The Deputy Chief Executive highlighted the importance of closely monitoring market conditions and explained how the Council plans to adapt its investment decisions accordingly.
Members discussed the decision-making process behind the Council's stance on borrowing, particularly given the forecasted decline in available cash for investment. The Deputy Chief Executive stated that the Council's decision not to borrow externally over the next two years was based on current capital plans and the high interest rates associated with external borrowing.
RESOLVED: To NOTE the report.