Kensington and Chelsea Council is set to streamline its treasury management strategy following a meeting of the Administration Committee on Thursday, 11 September 2025. The proposed changes aim to provide greater flexibility and efficiency in securing loans and managing the council's finances.
The council's current Treasury Management Strategy, most recently agreed on 5 March 2025, outlines the objective of balancing low interest costs with cost certainty. However, current contract regulations require any contract exceeding £100,000 to be executed by deed, a process that treasury management colleagues fear could delay transactions and prevent the council from securing the most favourable rates.
To address these concerns, the Administration Committee is recommending amendments to both the Contract Regulations and the Functions Delegated to Officers. These changes would allow the Executive Director for Resources to confirm treasury management contracts via electronic signature rather than sealing, streamlining the process and enabling quicker access to loans at optimal rates. Each instance of this delegated power would be meticulously documented for audit and transparency.
The proposed changes include the following amendments to Contract Regulation 8.04:
Contracts in excess of £100,000 (exclusive of VAT), including loan agreements for specific projects must be forwarded to Legal Services for execution as a deed and sealing unless (i) the contract forms part of the day-to-day activity of Council's Treasury Management Strategy under the authority of the Executive Director of Resources (recorded by a Delegated Authority Decision or equivalent document) and to confirm these contracts by electronic signature rather than sealing, or (ii) the Monitoring Officer agrees otherwise.
The proposed changes also include the following amendments to the delegation to the Executive Director for Resources:
To determine the Annual Treasury Management Strategy for Full Council approval and carry out all treasury management activities in accordance with the approved Strategy.
Treasury management transactions are reported periodically to Members as part of the submissions to Audit and Transparency Committee and Full Council.
The Administration Committee has agreed to present these proposals to Full Council for final approval. More information can be found in the Public reports pack 11th-Sep-2025 17.30 Administration Committee.
