Agenda item

Report of the Cabinet Member Finance and Assets – TO FOLLOW

In the absence of the Cabinet Member for Finance and Assets, the Leader introduced the report, which presents the council’s Capital, Investments and Treasury Managements strategies for 2026-27, and explains how the council plans to manage its money, assets and investments in coming financial year. She said the strategies are prepared in line with guidance from the Chartered institute of Public Finance and Accountancy and the statutory framework set by DHCLG, helping to ensure we continue to follow good practice in financial planning and governance.

The strategies set out how the council will use its capital resources responsibly to support our key priorities for the town, including the local economy, regeneration, and long-term sustainability, and show how the council will manage its existing assets and  investments so that they continue to provide value and support the essential services on which our residents rely.

The report demonstrates the council’s careful and balanced approach to managing public finances, continuing to invest in projects to secure and deliver benefits for residents and the future economy

The documents and figures are informed by the budget, and will in future years come forward at the budget-setting meeting, not possible this year as the finance team had to prioritise dealing with last-minute changes arising from the government’s 3-year settlement.  All details can be found in the budget papers approved last month.

Questions

A Member asked how the war in the Middle East might impact on council finances.  The Leader said the response to that was multi-faceted – there are potential financial risks for the council, and we are and will continue to mitigate these wherever possible:

-       the main areas of concern are the direct impact on the cost of energy and fuel.  The council is already buying gas and electricity supplies through a broker, mitigating significant fluctuations in price by buying with others.  Electricity is less exposed; gas is impacted more, but prices had already been fixed to the end of May before the start of the conflict; the price fluctuation is starting to calm and the broker will continue to monitor the situation;

-       fuel prices are being affected, and represent significant costs particularly in relation to contracts around waste management.  We are seeking mitigation through fleet management and buying power;

-       regarding borrowing and interest costs, we are working with the latest marketing information.  Borrowing is spread over short- and longer-term periods as part of the ongoing treasury management package, with the impact monitored and managed throughout year and reported back to Council and Cabinet in the usual way.  The current situation may mean the proportion of short to long-term borrowing may change to reflect different risks, but we are taking proper financial advice on our approach;

-       the costs of goods and services is also subject to indirect pressure, but we are making the best use of procurement functions and frameworks when buying supplies, to ensure we manage our money well.

In response to further Members’ questions, the Leader said that:

-       she could not confirm the present occupancy rate of the MX but will provide a written response after the meeting;

-       not capitalising expenditure under £10k and charging this to the revenue budget is standard practice in district council finances.

A Member asked about the Environmental, Social and Governance (ESG) Policy, saying councillors are regularly lobbied about investment in tobacco, any investments that might prolong the ongoing crisis in the Middle East, and the council’s investment policy around ESG.  He wondered if there are any plans to take a closer look at these issues.  The Leader confirmed that the council does not invest in tobacco, and is continually looking to avoid investments in areas it would prefer to avoid; it has a small amount invested in fuel, and has committed to seeing another investment through to the end of its term unless the markets change, as it would cost £450k to de-invest.

She added that CBC has no control over its pensions investments.

Debate

A Member commented that, compared with other towns facing the same local and national issues as Cheltenham, CBC does very well in providing both mandatory and non-mandatory frontline services.  He said this is due to the excellent management of the finance team and officers who continue to do such a great job in running our finances. 

The Leader also thanked all the officers who manage CBC’s finances on our behalf, and thanked Members for their questions and comments.

RESOLVED THAT:

·         the Capital Strategy 2026/27 at Appendix 2 is approved;

·         the Investment Strategy 2026/27 at Appendix 3 is approve; and

·         the Treasury Management Strategy Statement 2026/27 at Appendix 4 is approved. 

32 in support, 1 abstention