The Model TMS — what's in it and why
About this course
A guided tour of the canonical Model Treasury Management Strategy synthesised from 89 council TMSes. What each section is for, why it's there, and how the corpus settled the framing — with deep-links into the live Mirror.
What you'll learn
- What the Model TMS is
- External context
- Balance sheet & Liability Benchmark
- Borrowing — key decisions
- Investment — key decisions
- MRP — Annual Statement
- Authorised Limit & Op Boundary
- Treasury Management Indicators
- Tailoring for your council
Part of these pathways
Related courses
- The Capital Financing Requirement (CFR)
- Balance sheet projections
- ESG & sustainable treasury
- Alternatives to PWLB
- After the S114: capitalisation & EFS
- Devolution & reorganisation: the treasury view
Common questions
What is Anti-arbitrage rule?
Statute and CIPFA-backed: an authority must not borrow more than (or in advance of) its needs purely to invest the surplus for profit. Compliance is auditable and enforced by the PWLB itself.
What is Applicability schema?
The Mirror's three-tier scheme: required (Code/statute mandates inclusion), strongly-advised (corpus universally does it), optional (nice-to-have). Some sections gate on conditions (HRA, derivatives, LOBOs, etc.).
What is Authorised Limit?
The legal maximum external debt under section 3(1) LGA 2003. Approved annually by full Council. Cannot legally be exceeded; breach is a statutory event.
What is Bail-in?
If a bank is failing, the regulator may convert deposits into bank equity rather than ask taxpayers to bail it out. Loss transfers from the public purse to the bank's creditors — including LA depositors. Caps how much LA cash should sit in unsecured bank deposits.
What is CFR?
Capital Financing Requirement. The total of past capital expenditure not yet permanently financed — the council's underlying need to borrow.
What is CIPFA?
Chartered Institute of Public Finance and Accountancy. Issues the Treasury Management Code (2021) and Prudential Code (2021). Members 'have regard to' the CIPFA Codes by statute.