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Agenda item

Budget Strategy Papers

Purpose:

To present the Capital, Investment and Treasury Management Strategies for review for 2026/27 budget setting process.

 

Recommendation:

That the Audit and Governance Committee resolves to:

1.    Note the strategies in annexes A, B and C.

 

Minutes:

Madhu Richards, Director of Finance, presented the item, the purpose of which was to present the Capital, Investment and Treasury Management Strategies for review for the 2026/27 budget setting process.

 

In the presentation the Director of Finance made the following points:

 

  • The Council’s Constitution had been amended to update the Terms of Reference of the Audit and Governance Committee to include the review of the three strategies presented as part of the annual budget setting process.
  • The Capital Strategy ensured capital plans were affordable, prudent and sustainable. The strategy was required to manage debt within set indicators and demonstrate value for money.
  • The CIPFA Prudential Code for Capital Finance required that the Investment Strategy included financial and non-financial investments. The Council invested its money for three broad purposes: Treasury Management Investments; Service Investments; Commercial Investments.
  • The Treasury Management Strategy was more familiar to Members as it was brought to the Committee on a quarterly basis.
  • The Treasury Management Strategy included detail of the Ethical Investment Approach on page 51. This had been requested by the Committee. It was emphasised that this was not the sole consideration in the selection of investments but was now included as a consideration.

 

In the discussion the following points were raised:

 

  • The recent training provided to Members on the Statement of Accounts had been very helpful in making the report clearer.
  • It was noted that in 2026/27 the Council was not undertaking new external borrowing but that this may need to be explored in the future.
  • Clarification was sought on the number of electric waste vehicles used by the Council.
  • It was confirmed that the active lending market was not the first route of borrowing the Council would pursue if borrowing was required.
  • It was confirmed that all individual projects required business cases to be taken to the Senior Leadership Team prior to implementation.
  • Regarding waste projects the Committee explored what would happen to existing and purchased plant when a Unitary Authority was in place. It was confirmed that planned procurement of vehicles had been planned around Local Government Reorganisation (LGR) and replacements would be made only when necessary. The Vice-Chair noted that the Task and Finish Group that had focused on the Waste Project had noted that the project was designed to be LGR proof.
  • A query was raised around the process for establishing the ethical investment approach of the Council. The Director of Finance advised that the Council’s treasury advisors, Arlingclose, were employed to undertake due diligence in this area. It was noted that it was the intention for Arlingclose to attend a training session to be held for Members in the coming months, which would enable further questions to be answered. Further comment was made that the report reflected the balance required between the need for a return on investment and ethical practices.
  • It was confirmed that the two properties noted as being disposed of on page 23 of the report were Knights Court and 27/27a High Street Witney.

 

Councillor David Jackson proposed noting the strategies presented in annexes A, B and C. This was seconded by Councillor Elizabeth Poskitt and agreed by the Committee.

 

Resolved: The Audit and Governance Committee noted the strategies in annexes A, B and C.

Supporting documents:

 

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