Surrey County Council is on pace to be hit with more than £1 million in fines and redress payments due to its repeated failures within its education service over the last two years. The council says the system doesn’t work for families, schools, or local authorities – and has lobbied the government for changes, additional funding, and urgent reform.

The “record-breaking” fines, which have climbed from £47,000 in 2020 to more than half a million pounds last year and almost double its previous high of £258,730 in 2023, show the council has “lost control and continues to put vulnerable people at risk,” according to opposition leaders. Now, Surrey County Council has paid £239,510.75 in financial remedies in the first six months of this financial year – putting it on track to hit £470,000 for the full 12 months and a million pounds in the past two years. The majority, £220,965.00, relates to its education services, with the largest individual payments arising from complaints about missed education or missed provision, reports show. These are made when a child is unable to attend school because appropriate or alternative support has not been provided, or where the provision agreed in an Educational Health Care Plan (EHCP) has not been put in place.

The three largest individual remedies paid out so far this year are about £11,000, £8,900, and £8,353 – primarily in recognition of time missed. The largest fine or payment in its Children’s Social Care services so far is £8,325.12, in relation to “errors.”

Clare Curran, Surrey County Council cabinet member for children, families, and lifelong learning, said: “We are working hard to reduce spend on fines, which we know is higher than it should be. Provision and support for children with SEND is a systemic issue that councils up and down the country are grappling with. The national system is not working for families, schools, or councils, and we and other bodies are consistently lobbying the government for wider system changes, additional funding, and urgent reform.”

She said the council had also been working to improve the service with £15m put into a “three-year multi-agency recovery plan” in 2023, which was “now showing clear performance improvements.” Cllr Curran added: “The volume of stage one complaints received in the first six months of this year has decreased compared to the same period in the last two financial years, reflecting the efforts made by services across the council to resolve complaints early on and in the timeliness of responses. We also recognise that delays in issuing Education, Health and Care Plans (EHCP) have historically contributed to missed provision and subsequent fines, however progress is being made in this area too.

“Our average EHCP timeliness levels in Surrey over the six months from September 2024 – February 2025 is 72 per cent, well over the national average of 50.3 per cent. We have also caught up on the backlog of Education, Health and Care needs assessments, and over 75 per cent of overdue annual reviews have now been brought up to date. We expect these improvements to start having an impact on the number of Local Government Ombudsman cases in the near future.

“We are resolute in our ambition to continue to improve services and outcomes for children and young people with additional needs and disabilities so that they are happy, healthy, safe, and confident about their future.”

Councillor Paul Follows, Liberal Democrat group leader at Surrey County Council, said the authority had been promising to fix children’s services for years but has had little to show for it so far. He added: “Surrey County Council have for years been promising families that they would get a grip of children’s services and SEND provision, and as these record-breaking fines indicate, they have lost control and continue to put vulnerable people at risk.”

New Surrey County Council HQ, Woodhatch Place on Cockshot Hill, Reigate. Credit Surrey County Council

The Surrey Borough of Spelthorne’s financial crisis is “even more critical”, with millions in cuts needed to avoid catastrophic bankruptcy, says new report.

Best value inspectors were called in to review the council’s finances in May 2024 in light of extremely high levels of debt and borrowing. Spelthorne’s debt reached £1.096 billion in March 2023 – the second highest level of debt for a district council in England at the time.

The findings of the inspection have been published today (March 17). The report highlights that the council “is in a critical financial position, burdened by unsustainable debt levels, significant investment risks, and systemic governance weaknesses”.

Between 2016 and 2018, Spelthorne Borough Council borrowed around £1 billion to invest in a commercial portfolio of Grade A office buildings and residential land in and around the borough. But slow progress on regeneration and housing projects highlights a limited understanding of regeneration delivery as well as finance and risk, the inspectors said.

Best Value Inspectors concluded: “The council’s use of its resources is inadequate”. In the damning report, they said Spelthorne’s approach to property acquisitions “lacked due regard to long-term planning and risk management” and had an “overly-optimistic reliance on consistency” of the market that the Council first entered. 

The report said: “The combination of voids, expiring leases, and falling income streams from the investment portfolio threatens the stability of its budget. Adding to the strain are the ongoing revenue costs of housing and regeneration projects, which were suspended in late 2023. Despite these mounting financial pressures, no clear path forward has been outlined to address them.”

The recovery process will be overseen by government-appointed commissioners. Minister of State for Local Government and English Devolution, Jim McMahon, wrote to leader Cllr Joanne Sexton to say the local authority is failing in its ‘best value’ duty to residents, essentially meaning the authority is defecting on its ability to make decisions that are economic, efficient and effective and work towards continuous improvement. 

Inspectors said the council has a “poor record” of fully and effectively implementing recommendations from external reviews. The report read: “Senior officers display an optimism bias and a lack of awareness of the true situation facing the council. We do not believe the council has the capacity and capability to make the urgent changes needed without significant external support.”

Both the inspection and the recent external audit found errors in the council’s financial practices including the miscalculating the minimum amount Spelthorne needs to keep paying back its debt, incorrectly classifying expenses as assets, further undermining the revenue budget. 

“The outline budget report for 2025/26 to 2028/29 presented to members on December 9, 2024 shows the need to deliver £8.6 million in savings by 2028/29, equating to 64 per cent of the council’s core spending power for 2024/25, or 33 per cent of the net budget, assuming contributions from commercial income. In our view, even these projections are understated. Despite this, we have seen no credible strategy in place to achieve savings of this level,” said the report.

Leader of Spelthorne Borough Council, Cllr Joanne Sexton, said, “This Group Administration has faced a challenging time and has been actively pursuing the right solution to manage the historical debt that it has inherited. We have met with the Local Government Minister from central government, and we have agreed to work in partnership to take decisive action in the remaining time we have before local government reorganisation is implemented. Our pledge remains that we will always put residents at the heart of everything we do.”

The council’s senior management team also came in for criticism in the report. Inspectors said the team seemed “overly confident” and “appear to underestimate the scale of the financial risks”. Member challenges remain “limited” according to the report, with many councillors not fully understanding the risks at hand. Inspectors highlighted there was a “wider breakdown” of relationships between senior management and the political leadership.

The findings of the inspection highlight the council is failing to meet best value standards in five critical areas:

• Use of Resources;
• Continuous Improvement;
• Governance;
• Leadership;
• Culture. 

Inspectors have published thirteen recommendations for Spelthorne: 

1. Commissioner-led intervention
2. Comprehensive commercial strategy
3.  Review and strengthen asset management
4. Review of the Council’s Minimum Revenue Provision
5. Revised Medium-Term Financial strategy
6. Debt reduction strategy
7. Transformation strategy development
8. Review and strengthen finance function
9. Improvement and recovery plan
10. Revised Corporate Plan
11. Audit Committee structure
12. Culture and relationship building
13. Housing delivery

Emily Dalton

Spelthorne Borough Council offices in Knowle Green, Staines. Credit: Emily Coady-Stemp

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Chris Caulfield compares Woking and Spelthorne:

The “critical” state of Spelthorne Borough Council’s finances means it must cut at least £8.6 million from its budget by 2028. To put that into perspective, bankrupt Woking Borough Council made £8.4  million in cuts last year in an effort to right its own mess. It managed it by cutting 20 per cent of its workforce, scrapping all grant funding to community groups, and shutting services such as public toilets.

Spelthorne Borough Council’s finances  are “unsustainable”, with a £1 billion pound debt  and a falling income stream. It means the authority must also cut millions in services to avoid the catastrophe of bankruptcy. The damning critique of the north Surrey council’s sitation was published today, Monday, March 17, on the back of a best value review into the way the borough has been managed.

Spelthorne Borough Council, like Woking, borrowed heavily to invest in property and used the income to pay for services above and beyond what it could have otherwise afforded. And, again like Woking,  it failed to put enough money aside to cover the cost of debt interest repayments.

“In essence, the council’s revenue budget is under far greater pressure than recognised by the council. Inherent risks are beginning to materialise, and could accelerate rapidly”, the Spelthorne Borough Council: Best Value Inspection report read.

It comes as the government confirmed it was proposing an intervention package, including appointing commissioners to oversee changes in how Spelthorne Borough Council is run because the borough lacks experience needed to make the cuts and had “no credible strategy in place to achieve savings of this level.”

Spelthorne has to shed £8.6 million from 2028/29 budget. Last year Woking Borough Council  – the only local authority with a higher per capita debt than Spelthorne – achieved £8.4 million in savings. 

This is how residents and commuinty groups in Woking were affected. It is being used to paint a picture of what cuts at that scale look and feel like

How Woking achieved its savings.

• Centres for the community and day care facilities closed and merged
• Sports pavilions transferred to sports clubs to take over and “ensure as many of these facilities can remain open”.
• Grants to voluntary and community groups stopped
• Woking Community Transport reduced but reviewed annually as part of the council’s Medium-Term Financial Strategy.
• Grounds maintenance and street cleaning services scaled back to statutory levels. 
• Independent living and family services transferred to Surrey County Council or other boroughs, which means they will continue to operate as normal with no impact to services users.
• Business liaison and support services will be scaled back
• All public toilets closed, except those located in Victoria Place and Wolsey Walk in Woking Town Centre.
• Fees and charges increased
• Loss of up to 60 council staff
• Council tax was also increased that year by 10 per cent. Since then it has risen by a further 2.99 per cent.

Related reports:

Who will be saddled with Spelthorne’s and Woking’s £3 billion debts?

Could Woking’s debt be shared by you after reorganisation?

What Epsom could do with Woking’s £75 million bail out?

Ex-Council Officers under investigation for Woking’s £2 billion debt

Will Epsom and Ewell be bailing out Woking?

No wonder Woking went bankrupt. Scandal of private school loans

PM confident of success in Woking

Woking’s whopping bail out and tax rise

Residents will face another jump in council tax bills from April 1 as local authorities have announced their budgets for the coming year. Surrey County Council, the Police and Crime Commissioner, and each of the county’s 11 districts and boroughs, confirmed their increases separately last month, with council tax bills and collection being the responsibility of the districts and boroughs.

Police and Crime Commissioner Lisa Townsend confirmed a rise of £14 per year for residents amid an increase in national insurance contributions and officer pay rises. While Surrey County Council, responsible for adult social care as well as services including road repairs and schools, increased its tax by 4.99 per cent on Band D homes.

Meanwhile, many local authorities have had to make tough decisions to balance the books. Councils slammed the government for giving an ‘unkind’ or ‘difficult’ financial settlement, meaning they have had no increase in spending power. Inflation, wage rises and rocketing costs for employer’s national insurance contributions have all pulled at the seams of councils’ pockets.

Table created by Epsom and Ewell Times

“Critical” details on nearly 5,000 homes across 35 sites in Epsom and Ewell have been laid out after the borough council submitted its planning masterplan.

The local plan will shape the future of the borough’s jobs, environmental protections, and leisure development – as well as allocating land for new homes and much-needed infrastructure improvements, the council said.

The single largest development will be in Horton Farm, between Horton Lane and Hook Road, where more than 1,250 homes are earmarked to be built alongside business spaces, a community building and park.

The plan will go before public examination by an independent inspector later this year for sign off.

Councillor Peter O’Donovan, chair of the licensing and planning policy committee, at Epsom and Ewell Council said “I am very grateful to officers who have worked diligently to reach this milestone, ensuring that the local plan is assessed against the framework to which it was developed.

“Overall, it has been a huge undertaking.”

The council has been set housing targets of about 4,700 homes with the local plan identifying a supply of 4,914.

He added: “I know that the plan will not please everyone. 

“However, I believe it is a huge step forward for our borough and our communities, and if adopted it will help ensure that all Epsom and Ewell residents can enjoy the benefits that this strategic plan aims to deliver – whether their focus is on access to affordable homes, leisure facilities and green space, to jobs and economic growth.”

Included in the target are 456 homes that have already been built. Green belt land will be used to provide 1,580 homes.

The council says its planning bible will create “new vibrant communities” centred on currently underdeveloped transport hubs or development of larger sites.

It hopes these new developments will “form new communities and grow to be distinct places with their own identities.”

To support this, they will need to be “supported by appropriate investments in community and transport infrastructure to ensure existing and new residents are supported in terms of movement, health, education and other services.”

Epsom town centre will also be redeveloped to create improved retail space. 

“It is important that the town centre continues to diversify and attract uses other than retail to the town centre to reflect the social and economic changes that have affected demand for retail and office space and investment. 

“Developing the night-time economy is a key opportunity, with recent investment in a new cinema and the Playhouse Theatre”, the submitted plan read.

So far 35 sites have been allocated for redevelopment. Some, such as the 455 homes and a bespoke performing arts centre for the Laine Theatre Arts at the Southern Gas Network Site have already begun working through the planning system.

The 35 site allocations the council hopes will  deliver a significant proportion of the Local Plan’s housing requirement.

• Southern Gas Network Site Allocated for: Approximately 455 dwellings  and a bespoke performing arts centre for the Laine Theatre Arts
• Hook Road Car Park Allocated for: Approximately 150 dwellings
• Solis House, 20 Hook Road Allocated for: Approximately 20 dwellings 
• Bunzl, Hook Road Allocated for: Approximately 20 dwellings
• Epsom Town Hall Allocated for: Approximately 90 dwellings
• Hope Lodge Car Park Allocated for: Approximately 30 dwellings 
• Former Police and Ambulance Station Sites Allocated for: Erection of a new 85 bedroom residential, nursing and dementia care home for the frail elderly 
• Epsom Clinic Allocated for: Approximately 30 dwellings
• Depot Road and Upper High Street Car Park Allocated for: Approximately 100 dwellings and a decked public car park
• 79-85 East Street Allocated for: Approximately 35 dwellings
•  Finachem House, 2 – 4 Ashley Road Allocated for: Approximately 20 dwellings 
• Global House Allocated for: Approximately 75 dwellings 
• Swail House Allocated for: Refurbishment of Swail House for residential use and the provision of replacement purpose-built specialist accommodation for the RNIB consisting of approximately 45 dwellings (net) located to the rear of Swail House
• 60 East Street Allocated for: Approximately 30 dwellings 
• Corner of Kiln Lane and East Street (101b East Street) Allocated for: Approximately 5 dwellings
• Land at Kiln Lane Allocated for: Approximately 40 dwellings
• Hatch Furlong Nursery Allocated for: Approximately 30 dwellings 
• Land to the Rear of Rowe Hall Allocated for: Extra Care Accommodation comprising 96 self-contained apartments, staff and communal facilities
• 7 Station Approach Allocated for: Approximately 5 dwellings 
• Esso Express, 26 Reigate Road Allocated for: Approximately 10 dwellings
• Richards Field Car Park Allocated for: Approximately 7 dwellings
• Etwelle House, Station Road Allocated for: Approximately 20 dwellings 
• 140-142 Ruxley Lane Allocated for: Approximately 12 dwellings
• Garages at Somerset Close & Westmorland Close Allocated for: Approximately 6 dwellings
• 64 South Street Epsom Allocated for: Approximately 6 dwellings
• 35 Alexandra Road Allocated for: Approximately 8 dwellings
• 22-24 Dorking Road Allocated for: Approximately 18 dwellings
• 63 Dorking Road Allocated for: Specialist Care Home with ancillary nurses accommodation (equivalent to 6 dwellings)
• 65 London Road Allocated for: Care home up to 81 bedrooms
• Epsom General Hospital Allocated for: Approximately 305 units older people’s accommodation (Use Class C2), 24 key worker dwellings and a children’s nursery 
• Land at West Park Hospital (South) Allocated for: Approximately 50 dwellings 
• Land at West Park Hospital (North) Allocated for: Approximately 150 dwellings 
• Land at Chantilly Way Allocated for: Approximately 30 dwellings
• Hook Road Arena Allocated for: New Sports Hub for the borough to include playing pitches (grass and artificial), a new pavilion and changing facilities. The provision of approximately 100 dwellings on the eastern part of the site
• Land at Horton Farm Allocated for: Approximately 1,250 dwellings including some specialist housing and self-build plots, 10 gypsy and traveller pitches, business incubation space, community building and a public park of approximately 7ha in addition to other green and blue infrastructure.

Related reports:

Epsom and Ewell Local Plan Submitted for Examination

The Local Plan plot thickens after revised NPPF

Council minority vote Local Plan to next stage with Green Belt in

Epsom and Ewell’s Draft Local Plan goes to Full Council

and many more….. search “Local Pan”

A new cinema or bowling alley could “breathe new life” into Leatherhead as part of major regeneration plans aimed at “reversing the trend of brands leaving the town”. Plans for the high street, Swan Centre and Bull Hill will be put on display this week with people invited to have their say on the proposals that will be among the biggest changes to the town in years. Mole Valley District Council and Kier Property are working together on the project and have said they were “excited to share” the new layouts that feature “significant updates” based on feedback from 2024.

A spokesperson for the project said: “The proposals… aim to breathe new life into the Swan Centre and Leatherhead High Street. This will be through investment in upgrades to the look and feel of the centre. We are also proposing to open up the main entrance to provide specific units to bring exciting and quality chains and independent restaurants and operators to Leatherhead.” The new layout will also include what is being described as a ‘cultural building’ on the first floor ‘to potentially include a cinema, bowling, activity centre to provide a great new entertainment offering in the town centre.

They added: “This investment will be a catalyst to improve the quality and variety of offer in both the Swan Centre and Leatherhead High Street, reversing the trend of brands leaving the town and shop closures.” To take the development further, the council and Kier Property – working together as a joint venture called The Leret Partnership, is calling on residents to give their views on the updated proposals.

Among the updates and refinements are an increase in public green space and new building layout in Bull Hill with two drop-in sessions being held this week to give people the opportunity to take a closer look. Both sessions will take place in the former Clinton Cards site within the Swan Centre. The first will run from 2pm to 8pm on Thursday, March 13, with the second taking place on Saturday, March 15 from 10am to 4pm. They are also being hosted on the Leret Partnership’s website.

Image: Swan Centre Proposal from the Leret Partnership (MVDC)

Related reports:

River Mole to attract visitors to Leatherhead?

Leatherhead town on the way up?

Homes will be built on the former green belt gateway into Dorking – forever changing the character of the picturesque town.

Plans to turn more than eight hectares on the edge of the Surrey Hills into housing were approved on appeal in 2023 but details of what it would look like were only given the go-ahead last week. The decision was made despite many at the Wednesday, March 5, meeting airing concerns over traffic on the “poor” A25 and the impact of school coaches being pushed into the town’s one-way system. Councillors were hamstrung in their efforts to mitigate against the impact of the added traffic following the appeal ruling and could only vote on the plan’s layout.

Developers Taylor Wimpey, however, said the scheme, which would include 72 affordable homes, was an “exciting scheme for Dorking.” Speaking on behalf of the application was James Newton. He said the proposals bring “much-needed homes for the district” with “77 per cent of the mix being one to three-bedroom properties.” He added: “The affordable tenures include social and affordable rent, shared ownership and first homes and the mix has been agreed with the housing services team. The design has been amended over time with input from heritage officers… and takes cues from the Dorking vernacular and the wider area.” Homes, he said, will be sustainable with air source pumps and solar panels while the project as a whole would bring in more than £3million into Mole Valley District Council through community infrastructure payments. He finished: “This will be an exciting scheme for Dorking.”

The L-shaped site will take up two fields west of Dorking. The land was originally in the green belt when the decision to allow the homes was granted on appeal. Since then, it has been put into Mole Valley District Council’s local plan as a site designated for development. As well as the 144 homes, there will also be parking for ​​The Priory Secondary School, including staff and coaches. Officers told the meeting they were happy with the project and that it would not harm the character of the area – with red tiling used to help it blend in with existing homes in the town.

Speaking against the plan was Nicholas Tinker, who highlighted the 60 letters of objection. He said: “144 dwellings will create, at least, 144 additional vehicles. More realistically, double that figure, most people leave for work at the same time every morning. The congestion on the Westcott Road and around town will be totally unacceptable.” Air quality, he said, would degenerate and reach dangerous levels for schoolchildren, with the coach drop-off point creating a particular problem and forcing them to use the one-way system. He said: “It’s going to be absolute chaos.”

Cllr Abhiram Magesh (Liberal Democrat; Mickleham, Westcott and Okewood) said: “I’m generally pro-affordable housing. Housing means more people, more people means more council tax for front-line services, more customers for local business, however, I’m quite torn on this particular development because I do feel it’s lacking in a number of ways. We’ve discussed quite adequately in the past that the highways assessment is quite lacking. We all know the trouble on the A25 – especially at peak time. I’m frankly torn about this because its layout is effectively a cul-de-sac which I think is generally quite poor planning strategy. So while I laud the affordable housing commitment, I’m extremely worried for a lot of my constituents in Westcott and Abinger who have to essentially travel every single day to get any form of amenity in Dorking. The A25 is of a poor quality as it is right now, so I’m not sure how at minimum 144 extra cars – how the road is going to be able to handle that.”

The designs and layout were approved by eight votes in favour, with two against and three abstentions.

Taylor Wimpey plans for 144 homes outside Dorking (image Taylor Wimpey/ Mole Valley Planning Portal)

The iconic Surrey Hills will keep its classic English pie and mash shop after plans were approved for the takeaway in Box Hill. Posha’s Pie and Mash Shop, in the rural Box Hill Road, Tadworth, was given the go-ahead at the second time of asking despite traffic officers again recommending its refusal. Surrey Highways said in January that the shop should be refused permission over concerns of cars reversing onto the main road, and the application was deferred to allow the owners to make the needed changes.

The new plan removed the on-site parking that had caused concern, but Surrey Highways was still unimpressed, saying cars would now park in the nearby streets, clogging roads and pavements. Councillors disagreed and thought the shop should be encouraged as it would bring trade to the area as well as much-needed food options. Councillor Paul Potter (Liberal Democrat; Brockham, Betchworth, Buckland Box Hill and Headley) said the parking and traffic issues were overstated given the generally low levels of cars using Box Hill Road. He said: “(The pie and mash) is a vital part for a lot of people up there. For a lot of residents in the mobile homes, they walk there, they don’t drive – there are hundreds of mobile homes up there. It’s a vital thing for the community.”

Cllr Simon Bud (Conservative; Brockham, Betchworth, Buckland Box Hill and Headley) added: “It’s a rural business in a rural area, that’s what this is. They’re trying something quite different from what you normally see, and how good that is to see in a rural area on a rural road. How refreshing to see a car-free development. I cycle here, and if more of us did, we wouldn’t have this problem, would we? It’s really great to see a business that’s going forward and making it car-free.”

The site has been used as a pie and mash takeaway with a seating area since August 2023. The application was to formally change its use from the old dog grooming parlour. The Wednesday, March 5 meeting of Mole Valley District Council heard from one speaker against the proposal. She told the meeting that Porsha’s advertised on social media, which would draw in people from outside Box Hill. She said: “Cars park up on the pavement outside our house, which is the only pavement by the pie and mash. Indiscriminate parking narrows the road and interferes with the free flow of traffic and prohibits pedestrians from using the pavement. We also have a lot of teenagers who do their Duke of Edinburgh awards and walk along where the cars are parked with two wheels on the pavement. It is dangerous.”

The plans were ultimately passed with the unanimous backing of the committee.

Image – Credit Google Street view May 2023 the business’s food van

Chris Caulfield of the BBC’s Local Democracy Service brings us the latest twist in the awful Woking Borough Council debt crisis. Its £2.1 billion debt accumulated under a Conservative administration from unwise property dealings. The Labour Government is driving forward a reorganisation of Surrey’s local government and there is anxiety that Woking’s debt will be spread to a wider Council tax payer base as a result. Could Epsom and Ewell householders end up paying for the mistakes of Councillors they did not elect?

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Even if bankrupt Woking Borough Council sold everything it owned, it would still be more than £1.5 billion in debt. The huge figure was published as part of the ongoing reports Government commissioners must produce on the broken borough as it goes through the painful process of rebalancing its books.

The report stated that while the council, which declared itself bust in 2023 following a disastrous regeneration program that saddled residents with huge tax rises and massive service cuts, was taking steps to sell off its assets, the level of debt was still such that it needed significant government support. Published on March 6, the report revealed that the council had a core spending power of £16.9 million a year – but servicing its £2.1 billion debt was costing £1.3 million a week in interest alone.

“Even if everything else could be disposed of, the level of overhanging debt would still be significant, over £1.5 billion, as the level of debt far exceeds the value of assets,” the report stated. It added that some assets, such as the council’s social housing valued at £400 million, had to be retained. However, if the council did nothing, the annual interest costs and loan servicing would average £70 million and £73 million a year respectively, “which would add significantly to the level of debt.”

The council was granted Exceptional Financial Support for the next two years, allowing it to cover interest and other revenue costs. However, the commissioners warned: “With no ability to repay the exceptional financial support through asset sales, let alone all the legacy debt, the position is not sustainable. Work is underway to determine the best exit strategy from the commercial legacy, which we are engaging with government on, and it is recognised that a long-term financial solution will not be in place for the 2025/26 budget process. However, the current position is not viable, and commissioners are keen to continue engaging with government on the route forward.”

Responding on behalf of the Ministry of Housing, Communities and Local Government, Baroness Taylor of Stevenage acknowledged the bleak situation but stated that the department was reassured Woking Borough Council was committed to radically overhauling its operations. Serious concerns remained over the task ahead and the potential impact on the impending reorganisation of local government – the dissolution of Surrey’s boroughs, districts, and county council, to be replaced with either two or three larger unitary bodies with an elected mayor.

Baroness Taylor wrote: “I share your concerns about the capacity of the council to deliver this programme of change and encourage you to work with the council and the ministry to consider how we can best enable the council to improve, for the benefit of residents. We have been clear with councils in Surrey that commissioners have a vital role, not only in supporting Woking to continue to improve but also in responding to the invitation to all principal authorities in Surrey to provide proposals for local government reorganisation, to ensure that proposals are robust.”

Related reports:

What Epsom could do with Woking’s £75 million bail out?

Ex-Council Officers under investigation for Woking’s £2 billion debt

Will Epsom and Ewell be bailing out Woking?

No wonder Woking went bankrupt. Scandal of private school loans

PM confident of success in Woking

Woking’s whopping bail out and tax rise

“Hard” times are coming to Surrey Heath Borough Council residents as millions of pounds are being cut from services, with many reduced to minimum standards, as its bleak financial situation became clear. The borough is saddled with high debt repayments to cover the cost of loans it borrowed to finance and purchase Camberley Square and the House of Fraser. The costs of servicing the debt are said to be almost as much as the council brings in through tax.

Plans to sell the town hall for housing and move into the House of Fraser building have also been put on ice due to the imminent restructuring of local government and the likely abolition of borough and district councils. It leaves the council having to rely on rapidly depleting reserves while it guts services to residents – or face going bust.

At the February 19 full meeting of Surrey Heath Borough Council, members agreed to make cuts of £2.143 million in ‘transformation savings’ while drawing down £21.67 million from earmarked reserves. This comes after years of uncertainty over the council’s finances – which have finally been audited for the first time since 2019.

The budget papers read: “The council now has a greater understanding of its level of reserves, the figures contained within its base budget and the overall size of the deficit. This is not a palatable situation and requires some significant transformational savings, efficiencies and additional income generation just to remain solvent over the period covered by this Medium-Term Financial Strategy (the next four years). Over the previous budgets, the council has applied some of its reserve balances to support regeneration and continued delivery of services to the local residents and businesses; however…this is not sustainable in perpetuity. Previous years have seen an annual base budget review exercise which generated £2.1 million overall savings to the council. These have not been sufficient to bridge the budget gap and have only succeeded in ‘buying more time’ on reserve usage; the council is now embarking on a council-wide transformation programme.”

This includes a full review of all discretionary services and a restructuring of what it provides to residents. The report read: “The desired outcome of reducing the cost of delivery through reduction in the non-statutory element level of service, ensuring compliance with only the minimum statutory requirement and ensuring appropriate cost recovery in the discretionary chargeable services offered.” There will also be a full review of the staffing structure as this makes up the majority of controllable costs of services.

The council has also said it would look to sell off assets and has identified some that could be disposed of. However, its two largest assets, and the ones that are primarily the root cause of much of the council’s financial problems, are now worth significantly less than what Surrey Heath paid. Selling these would result in huge losses.

Councillor Shaun Macdonald, leader of Surrey Heath Borough Council, said: “As expected, the view is not pretty. We are now clear that the numbers we inherited were fundamentally misstated, with the reserves being confirmed as £16m lower. That’s about a third of a haircut versus the total. Therefore, our ability to provide the same services to residents that they’ve been used to is nonexistent.”

He told the meeting: “Putting the properties to one side, our core income is about £13m and our core cost of services is roughly £15.8m. It does not take an accountant to understand that’s a difference of £2.8m a year – and that is before net indirect costs of roughly £5.3m, which is predominantly made of interest and debt repayments – less property income – to pay for the reckless purchases made in 2016 and which will remain a significant number for future generations. So what are our choices to address this longer term? Well, there are only two options: reduce costs and increase income further.

“Our ability to increase income is extremely limited, therefore the budget increases council tax by the permitted maximum of 2.99 per cent.” He said the maximum contribution must come through cost-cutting, through efficiencies, and through transformational change.

He added: “This is easier said than done. Not least with the cost of change to factor in. We simply have to stop doing things that we do today if it can’t pay its way or it’s not a statutory service, and that is hard. It’s hard for us collectively in this chamber, it’s hard for the officers who work very hard to provide our services, to provide our residents with the best services they can. It’s hard for our residents who are used to having what they’ve had as a service or the support that they’ve been given through grants.”

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Critical front-line services will be spared after a huge government ‘bail out’ was agreed, bankrupt Woking Borough Council has said. Officially referred to as Exceptional Financial Support for local authorities, Woking Borough Council has been given £74.9 million for the 2025/26 financial year on top of the £96.5million agreed for 24/25.

Woking declared itself effectively bust in 2023 with debts of about £2 billion. It forced the council to cut new spending, axe non-statuary services and increase tax by 10 per cent.

It used the money to build up what it hoped would be a significant investment portfolio but instead saddled itself with huge debt repayments costing tens of millions of pounds every year that it simply can not afford.

It has left the council relying on the Government to cover the cost of its heavy borrowing, known as minimum debt repayment. And this week came the news that it would receive all the money it has asked for – including a further £ 2.8million to cover the cost of providing services this year.

Had the Government refused completely the council would have ground to a halt. Councils also have to, by law, balance their books each year, and the £2.8m above and beyond debt repayment was agreed as it was viewed that Woking Borough Council has been doing what it can to reduce its spending.

This has included mass layoffs, the sale of assets, and finding partners to take over the running of others. Had any further cuts been made in such a short period of time, the results would have been ‘catastrophic’ to both the council and residents it had been said.

The government cash comes as part of 30 councils overall that have been given support to manage financial pressures – such is the widespread problem of local government finance.

Cllr Ann-Marie Barker, Leader of Woking Borough Council, said: “I welcome the Government’s decision to provide exceptional financial support. Critically, this will ensure that the council can meet its financial obligations relating to its £2.1 billion legacy debt without impacting front-line services and will allow us to set a balanced budget at a meeting of Council on Monday 3 March.

“We continue to urgently address the council’s legacy debt through work being undertaken as part of our Improvement and Recovery Plan on asset rationalisation, debt reduction and improved commercial governance.

“We remain committed to working alongside Commissions and Government to find a lasting resolution to our complex and challenging financial situation.”

In January 2023, an external assurance review covering Woking Borough Council’s governance, finance and commercial issues was carried out. It provided an external assessment of Woking Borough Council’s governance arrangements, financial situation, commercial investments and its capacity and capability to manage these.

The Secretary of State was not satisfied that the pace or scale of the council’s response was proportionate to the issues it faced and decided immediate urgent government action was required, – and On May 25, 2023, he decided to intervene and appointed the review team as commissioners.

By June that year the council declared itself bankrupt and by October, the Commissioners spoke of the gravity of the situation in Woking and the scale of the challenge the council faced.

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