Epsom and Ewell Times
1st October 2026

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“Blocks away” from airport expansions

Flight over a town

So called “blockers” to major transport projects will be cleared in a move that looks set to curb challenges to Heathrow and Gatwick Airport expansions, the Government has announced.

The Prime Minister wants to curtail legal challenges to major decisions in what the Government describes as “unarguable cases” they say can cause “years of delay and hundreds of millions of cost to projects that have been approved by democratically elected ministers.”

Instead, the legal system will be overhauled with campaigners given just one attempt at a legal challenge for “cynical cases lodged purely to cause delay rather than three”. It comes after reports the chancellor Rachel Reeves said she was prepared to face down critics of plans to expand Heathrow Airport and Gatwick –  arguing economic growth outweighed other concerns.

The Government has said this would balance the need for ongoing access to justice against what it describes as a “challenge culture” where small pressure groups obstruct decisions taken in the national interest. Prime Minister Keir Starmer said: “For too long, blockers have had the upper hand in legal challenges – using our court processes to frustrate growth. We’re putting an end to this challenge culture by taking on the NIMBYs and a broken system that has slowed down our progress as a nation. This is the government’s Plan for Change in action – taking the brakes off Britain by reforming the planning system so it is pro-growth and pro-infrastructure. The current first attempt, known as the paper permission stage,  will be scrapped. 

“Primary legislation will be changed so that where a judge in an oral hearing at the High Court deems the case Totally Without Merit, it will not be possible to ask the Court of Appeal to reconsider. To ensure ongoing access to justice, a request to appeal second attempt will be allowed for other cases.”

What the airports say

Heathrow has said it would wait until formal plans before commenting but that it strongly believed in its “vital role for the UK economy” and its long-held  belief that expanding capacity at the UK’s hub airport was critical for economic growth.

A Heathrow spokesperson said: “Heathrow is the best-connected airport in the world. That competitive advantage for UK plc already enables over £200bn of British trade annually. But growing the economy means adding capacity at the UK’s hub airport which is full. That’s why we’re planning to unlock capacity by improving and upgrading our existing infrastructure, while also looking at potential options to deliver a third runway at Heathrow in line with strict tests on carbon, noise and air quality.”

Stewart Wingate, CEO of London Gatwick said: “We can be a major part of the Government’s drive for growth. We are already contributing over £5.5billion to the UK economy and supporting over 76,000 jobs, but unless we can access greater airport capacity the UK will miss out on opportunities to enhance global connectivity and unlock further opportunities for trade, tourism and job creation. Bringing our Northern Runway into routine use, through a £2.2 billion privately financed, shovel-ready investment will create 14,000 jobs and generate £1 billion a year in economic benefits. 

“The project, which is due for government approval early next year, could be operational by the end of the decade. We have put forward a strong and compelling case focused around making best use of our existing infrastructure, minimising noise and environmental impacts and meeting the four ‘tests’ for airport expansion set by Labour.”

The average legal challenge takes about 18 months to resolve and more than half of of all major infrastructure decisions were taken to court.

Campainers will not rest

Paul Beckford, the chairperson of the HACAN clearskies campaign group challenges the notion that expanding the airport would bring the craved-for growth.

He says that at best it could bring in £3.3bn over 60 years and that 75 per cent of passengers using a third runway would likely be transfer passengers “who contribute nothing to the economy”. He also said that Heathrow expansion would not be in a vacuum and instead “suck growth” from the regions.

Government’s own figures show that a third runway  at Heathrow would suck growth from the regions, citing Department for Transport Aviation Forecasts that suggested “expansion at Heathrow would see 170,000 fewer flights per year from regional airports than if expansion does not take place”.

Mr Beckford said: “Local communities around Heathrow represent nearly a third of all people across Europe exposed to levels of aircraft noise that harms their health. If Heathrow were to expand the Government would expose over two million people to increases in noise pollution in spite of a deepening evidence base of the negative health impacts, particularly at night. Such expansion would increase the emissions of the country’s single largest source of carbon by around 9million tonnes per annum, which is incompatible with the UK’s climate targets. 

“It would be a failure of duty for any Government to put the health of their citizens at risk in the forlorn hope of generating growth when we know that the business case is marginal at best and 75 per cent of passengers using any third runway would contribute nothing to the UK economy.” 

Sally Pavey, who chair the CAGNE group that opposes expansion of Gatwick airport call the government’s decision a disgrace that ignored public opinion in order to build a new runway by stealth. She said: “If this story is true it opens the door to us communities concerned about the decline in our wellbeing to benefit the shareholders of Gatwick Airport. Any airport expansion shows a lack of understanding and priority placed by this government towards global warming and yet we see the signs constantly on the news of flooding, fires and rising temperatures.  

“Aviation is one of the biggest polluters this planet suffers and yet a new runway would add extra carbon a year plus greenhouse gases, and there are no true decarbonising factors that will reduce this as with more planes comes more CO2 and noise.  CAGNE has been at the forefront of opposing this new runway due to the lack of infrastructure, lack of workers, decline in air quality and unbelievable increase in noise as Gatwick would be as big as Heathrow today.  

“Gatwick already has serious issues with noise and yet we were not allowed to include the modernisation of airspace that Gatwick is reliant upon to reach its economic growth goals with two runway operation. This is just one of the reasons we will be legally challenging a decision to allow a new runway at Gatwick. We have already started to fundraise to legally challenge a decision to allow two runway operations  as there were so many flaws in the evidence provided by Gatwick at the DCO hearings, this news story, if factual, is just another reason to challenge a new runway decision.”


New homes planned for Ashtead

Wates Development’s outline plans for up to 270 homes near the M25 in Ashstead (image Wates Development)

Hundreds of new homes could be built in Ashtead if newly submitted plans to Mole Valley District Council are approved. Wates Developments and its partners, Vistry Group, have submitted outline plans for up to 270 homes, of which about 40 per cent will be affordable.

The proposals, which still need to go through the planning process, also include a community centre that could become a children’s nursery. Nearby schools are said to be under-subscribed, with vacancy rates expected to grow in some areas, according to planning documents submitted to the council. The documents suggest that the new homes could help boost pupil numbers in local schools.

John Tarvit, director of planning for Wates Developments, said: “We have an exciting vision for this site to create a sense of place and community, with landscape-led design that incorporates a variety of green spaces. Our proposals will help encourage social interaction, provide safe and attractive streets, encourage sustainable travel choices, and maximise biodiversity. We’re proud that this will be a high-quality, net-zero development that reduces carbon emissions and enhances the resilience of the development to a changing climate. All new homes will be lean, clean, and green.”

The land, south of Ermyn Way, has been allocated for residential-led development by the council. The developers state they are “committed to creating a distinctive and responsive new neighbourhood, offering a good range of house sizes and types.

“The proposed development will enhance the existing local community and deliver a range of benefits for people in Ashtead in addition to the much-needed new homes.”

In addition to the housing scheme, the developers are proposing a community building with the potential for a children’s nursery, 30 acres of open space, and a children’s play area. At this stage, the plans are in outline format, but the developers have said that buildings will vary across the site, reaching up to a maximum of three storeys, although the majority will be two storeys.

The developers believe this approach will “create a varied roofscape, define marker buildings and add to the visual richness” of the project. They have also indicated that details such as the sizes of the homes, in terms of bedrooms, and the layout of the development are yet to be finalised.

Wates said the site currently consists of arable agricultural fields just north of the M25 and within walking and cycling distance of both Ashtead and Leatherhead. It is also already well connected to bus services. As part of the pre-planning process, Wates held meetings with nearby schools, including Trinity Primary School.

The planning statement noted: “At the meeting, the applicants were informed that the school is well below pupil capacity and referred to the same position at other local schools. It was explained to the applicants that local schools are accepting pupils who might not otherwise meet their selection criteria.” It added: “It was confirmed that Greville School currently has capacity and in the coming years will likely have greater capacity as there are significant spaces available in the reception year.”

Homes would be built on the western side of the site to create “a clear distinction between residential development and the eastern section within the retained green belt.” The final layout will be determined through discussion with the council.

Wates Development’s outline plans for up to 270 homes near the M25 in Ashstead (image Wates Development)


Local Plan lessons from a Surrey borough?

Waverley Borough Council (image Chris Caulfield)

Precious green belt sites could be at risk of speculative developments and Waverley Borough Council could be powerless to stop them after its biggest housing project was judged to be taking too long to build.

All planning authorities must demonstrate they can provide enough land to supply housing for five years.

If they don’t they can become vulnerable to speculative applications and can lose control over where new homes are built – and may have to approve applications they would normally refuse.

Waverley Borough Council has been hit by a double whammy of increased housing targets by the Government and the Planning Inspectorate’s decision to pull the 2600-home Dunsfold Park from its projections over its “development trajectory”.

This has left the council running out of earmarked land for new homes in just two and a half years.

The situation gets even worse when the new Government’s increased housing targets are added into the fold, bringing the figure down to just one and a half years.

The figures were published in a Waverley Borough Council position statement last November following the Planning Inspector’s Dunsfold Park ruling.

It read: “The site has been discounted from the council’s five year housing land supply by Planning Inspectors in recent appeals and for this reason, the council has decided to exclude the site from the five year supply until there is more certainty about the timescales for delivery of housing on the site.”

The plan has been to redevelop the aerodrome to form a new garden village on the brownfield site.

Planning permission for the first stage of the project was originally granted by the Secretary of State in March 2018. Its infrastructure is expected to support other developments in the borough.

So far “not one home” has been built.

Councillor Jane Austin, leader of the Conservative opposition group on Waverley Borough Council, criticised the borough for not publicising the change more widely saying residents deserved to know what was happening.

She said: “These housing supply figures are utterly dire and will mean more opportunistic development in inappropriate locations.”

“We may as well just hand over the keys to opportunistic developers for any of the borough’s green fields without some kind of national planning protection over them. I am extremely concerned about what this means for Alfold and edge of town sites across the borough.”

Surrey County Councillor for Waverley Eastern Villages Kevin Deanus added: “Since Dunsfold Park gained planning consent in 2018 not one home has been constructed.

“Meanwhile local villages like Alfold have doubled in size. Major planning permissions in the local area have been granted dependent on infrastructure upgrades delivered via the Dunsfold Park permission.

“We now have raw sewage coming out of the ground in Alfold and huge pressure on local roads and infrastructure. Local people are despairing.”

Councillor Liz Townsend, Waverley Borough Council portfolio holder for planning and economic development said they remained fully committed to delivering sustainable housing that meets the needs of the community while challenging unjustified and unrealistic targets imposed by the Government.

Dunsfold Park had originally been included in the 2018 Local Plan when the council was under Conservative control and was one of several sites identified to meet housing needs.

She said: “While the council sets the framework for development, it is important to clarify that we do not have the power to compel developers to build homes once planning permissions are granted. As of now, planning permission has been granted for around 5,000 homes across Waverley.

“However, this is no longer sufficient to meet our five-year housing land supply target, primarily due to significant increases in government-mandated targets.

“Originally set at 590 homes per year, this skyrocketed to 710 homes under the previous government, and now to an extraordinary 1,481 homes per year under current government policies.

“This cumulative target amounts to a staggering 29,000 homes over the next 20 years — effectively requiring the construction of an additional Farnham and Godalming within the borough, which is entirely unfeasible.

“Waverley Borough Council has made robust representations to the Government, including direct appeals to the Deputy Prime Minister, outlining why the housing need calculations are flawed. To date, these concerns have been ignored.

“We are actively working with the promoters of Dunsfold Park and other developers to accelerate delivery.

“However, Government Planning Inspectors have questioned the certainty of delivery on the Dunsfold site within the next five years.

|As a result, the council has been forced to remove this site from its short-term housing projections, although this position will be continuously reviewed.

“The council is working urgently to develop a new Local Plan that ensures sustainable housing, job creation, and critical infrastructure.

“This is the only mechanism available to justify a more realistic housing target. Claims that the council is not fulfilling its obligations or has alternative options are factually incorrect.

“We are committed to addressing the national housing crisis while balancing the need to protect our borough’s character and environment.However, it is the Government’s disproportionate and unrealistic housing targets—not a lack of action by the council—that are placing immense pressure on local authorities across the country.

“Waverley Borough Council will continue to advocate for realistic and sustainable solutions to meet housing needs while standing firm against policies that jeopardise the future of our communities.”

Image: Waverley Borough Council (Chris Caulfield)


The Redhill Harlequin Theatre bows out for 5 years.

Harlequin Theatre Redhill

It could take another five years before the Redhill’s Harlequin Theatre reopens after dangerous crumbly concrete forced its closure.

The popular theatre and cinema space in the heart of the town centre welcomed up to 120,000 people a year through its doors before it suddenly shut when reinforced autoclaved aerated concrete, which can collapse without warning, was discovered in September 2023.

Now it appears it will potentially remain closed until 2030 while Reigate and Banstead Borough Council, which owns the theatre, carries out the £10m safety refurbishment work. 

Council leader Richard Biggs told the January overview and scrutiny committee: “I understand the strong feeling and interest in resolving this situation at the Harlequin.

“I think we can all agree that none of us wanted to be in this situation but the safety risks associated with RAAC are paramount.

“The critical red nature of the RAAC panels means that this is going to take some time to resolve.”

He added: “Optimistically two to three years, possibly up to five years to get it back.

“I don’t think that’s changed from the conversations that we’ve had so far but we need to get further down the road and then we can start putting proper dates on things.”

The Harlequin Theatre is regarded as  a key cultural venue in Redhill and acts as a hub for cultural and social activities.

It’s closure has forced the council to look at providing alternate venues but early pledges to find a 500 seater venue have so far proved fruitless.

Cllr Biggs has still not ruled out the possibility of a larger venue being found but feels it is more likely that the arts community will have to settle for something less than half that size.

He said: “The likelihood at the moment is that we haven’t found a suitable arrangement for something of that size and costs.

“If we’ve got to spend the money I want to spend it straight on getting the Harlequin back up and running.”

He added: “I have said consistently that at the moment, we haven’t found any suitable temporary venues. 

“We have to consider the cost. I know people think that there’s a money tree somewhere, there isn’t.

“My priority is to get the Harlequin back up and running, particularly because of our lease obligations but partly because I genuinely believe that it’s a huge asset to Redhill and for the borough and for the wider area.

“There are lots of reasons for getting it back up and running as quick as possible and I want to make sure that we are concentrating on the right thing.”

He did not rule out the possibility of finding a larger site but added that there is a need for a variety of spaces.

In 2023 they sold about 69,000 tickets at the Harlequin’s box office with a further 5,000 sold via alternate sites.

On average the Harlequin Theatre cafe welcomed a further 40 people per day and about 2,400 a year.

The productions would bring a further 6,000 people to the site and room hires an additional 10,000 each year.

Room hires included local churches and the NHS  for café Milk and  baby weigh-ins.

The council said it is looking for a mix of sites to fulfil these roles as well as audition spaces and performance venues.  

The council leader invited interested groups who may have suitable sites to  come forward with options but stressed that he did not wish to distract from his main priority of finishing the Harlequin project.

Related reports:

Redhill theatre gone to rack and ruin?


Blot on Epsom Down’s west horizon to grow?

Woking from Epsom Downs

The “Croydonisation” of Woking will continue after a 26-storey town centre tower block on the former BHS site was approved. The plans for the 272-home 85-metre-tall building are nearly identical to those previously rejected in March 2024 but have been signed off following changes to Woking Borough Council’s housing targets and further clarifications from the developers. Donard Real Estate will demolish the former store to create the Crown Gardens project. The build-to-rent project will include 28 affordable homes as well as retail and commercial zones on the ground floor of the Commercial Way site. There would also be public space landscaping to improve the area around Christ Church.

Approving the plans – which were also under a separate appeal – would help the council meet its new, higher housing targets and help take pressure off green belt sites. The meeting was also assured the building would be predominantly made of brick, limiting the potential of weather damaging external cladding. The town centre had to be closed off after cladding fell from the Hilton Hotel building this year due to storms. Speaking on behalf of the developers was Mervyn McFarland. He said, “Crown Gardens will deliver 272 high-quality build-to-rent homes addressing the growing need for housing and helping Woking’s residents, particularly young people and families, to stay in Woking and contribute to the town’s vitality and growth. It will help alleviate pressure on traditional housing stock while also contributing to meeting housing targets. It will free up homes better suited to families and other demographics, contributing to a more balanced housing market in Woking. Crown Gardens will support Woking’s regeneration, bringing up to 700 new residents to the town centre. This is expected to bring in around £10m expenditure annually in local spending, boosting businesses.”

The limited parking at the site was no longer considered a valid reason to object to the plans given its proximity to Woking Railway Station and active travel options. The January 7 planning committee also noted that a similar high-rise application at Technology House was allowed on appeal, with the Planning Inspector saying parking options were sufficient. Councillor Rob Leach (Liberal Democrat, St Johns) said: “It’s clear that the development will help meet the housing needs that we have and the new government target building levels, to a significant extent, are helped by this. I’ve always been resistant to skyscrapers in Woking, what I’ve called the Croydonisation of Woking, in the past, but I think this has to be preferable to incursions on the green belt where that can be avoided.”

Related report:

Blot on Epsom Downs horizon to grow no more?


Surrey County elections must go ahead clamour

Old man with walking stick leaving polling station

The May 2025 Surrey county elections must not be postponed, the 11 boroughs and district councils have said. That call has been amplified with the Surrey Liberal Democrat MPs writing to Government lending their support to the call – while a petition arguing the same has been signed by more than 3,000 people. The decision to call off this year’s poll will be down to Government ministers who said they would consider delaying local elections in areas going through the devolution process. Surrey has put itself at the front of that queue – which would get rid of existing councils and replace them with a new structure. What that would look like is anyone’s guess at the moment, but could range from a single mega council, or potentially two or three slightly smaller bodies. Any new system would have an overarching strategic mayor.

The county leadership argues that postponing the elections would give officers time to get on with the once in a lifetime reorganisation – which needs to have interim proposals submitted by March ahead of a more ironclad May deadline. They also question the value of holding elections, which would cost an estimated £2.48m, for a council that was effectively doomed to die within two years – the new devolved authority is expected to be up and running in 2027 with shadow elections held the year before.

The leaders of the 11 Surrey District and Borough Councils met with their Surrey County Council counterpart on January 7 to discuss the English Devolution White Paper and what this would mean for the residents of Surrey. There was acknowledgement that the central Government was determined to introduce sweeping changes through devolution with district and county councils merged into new unitary authorities. A statement released after the meeting read: “All the Leaders of the Surrey District and Borough Councils expressed their concerns around the pace of change being imposed by central government and that such widespread and significant change needs wider consultation with the residents, stakeholders, and businesses across the county. In addition there was concern that the change, as proposed, will decrease local representation for residents of Surrey. While the Leaders concluded that there needs to be a dialogue with Surrey County Council on the proposed changes, there was wide agreement that the county council’s plan to write to the Secretary of State, Jim McMahon MP on Friday January 10, requesting to postpone the county elections scheduled to take place on May 1 2025 was not supported by the District and Borough Leaders and would be opposed if submitted.”

Surrey Heath Borough Council leader Shaun Macdonald added that allowing the elections to go ahead would ensure that all those involved “in shaping the future of our communities” had the democratic mandate to represent residents. The six Liberal Democrat MPs for Surrey also co-signed a letter to Government calling on it to not pass legislation postponing this year’s elections, describing it as an affront to democracy. They also expressed concerns over the speed of devolution and local government reorganisation. They said: “A proposal of this scale requires careful consideration and broad support. Yet, just three weeks after the government’s announcement, no credible plan exists. There has been insufficient engagement with district and borough councils or MPs to justify this unprecedented step.”

Elections, they said, must go ahead to give those voted in the mandate for how to deliver those changes. They added: “This is a once-in-a-generation opportunity to reshape local government in Surrey, and it must not be derailed by unnecessary delays or a lack of transparency.”

Related reports:

Are Epsom and Ewell’s Interests Served by Postponing Democracy?

Surrey’s Conservative leader wants to postpone May’s poll reckoning

Local government reorganisation: What will it mean for Epsom and Ewell?

All change! Epsom and Ewell Borough Council approaching its final stop?


MP spies pollution in Mole

Broken Manhole Chris Coghlan Dorking and Horley MP

Raw sewage has spewed out of a broken manhole cover and into the River Mole. Video taken by the Dorking and Horley MP, Chris Coghlan, shows the waste pumping out of the ground, just yards from the River Thames tributary in Brockham. He had been alerted by residents who said they were fed up after repeatedly trying to get Thames Water to fix the problem. The utility firm has apologised to those affected and said they would also clean up the surrounding areas.

Posting a video to social media, Mr Coghlan said: “So it’s happy new year, happy new sewage spill from Thames Water. I’m here outside a broken manhole cover here in Brockham and you can see it’s literally busting sewage out of it, spraying it everywhere. And behind me you can see loo paper, what looks like condoms.

“I’ve been speaking to some of my constituents here, this has been going on for years. They have been reporting it to Thames Water and they’ve done nothing and if you look behind me down here, this is the River Mole. It’s going straight into the River Mole. We’re a little upstream from the stepping stones where many people would love to bring their kids to paddle but they just can’t because this sewage is being dumped into the river and dumping E Coli everywhere.

“So I am very upset about this, I will be writing to Thames Water and the Environment Agency. It is a completely illegal sewage dump and I want it fixed.”

Thames Water publishes an up-to-date map showing near real storm discharge activity, as indicated by its monitors. At the time of publication there were active discharges in Chertsey feeding into the River Bourne meaning “there could be sewage in that section of the watercourse,” as well as at Leatherhead into the River Mole, at Holmwood into Holmwood Stream, at Cranleigh into Cranleigh Waters, and at Ockley Road feeding into Cobbler’s Brook.

In London, Thames Water has issued an update after E. Coli was found in an area of South East London with people in Brockley advised to boil their water before using it. A Thames Water spokesperson said of the Brockham leak: “We responded to reports of external sewer flooding near Hillside Close in Brockham on Monday January 6. When our engineers attended the water had receded, however we will carry out further investigations to understand why the flooding occurred. During this time we will also clean up the surrounding areas and we are sorry to those who have been impacted.”

Related reports:

Trust the public to check our rivers

River “Bogsmill” blights Borough

Image: Broken Manhole Chris Coghlan Dorking and Horley MP


Local government reorganisation: What will it mean for Epsom and Ewell?

Surrey and Epsom Council buildings

The leader of “doomed” Surrey County Council will write to the Government asking for the May 2025 elections to be postponed and Woking’s debt cancelled as part of devolution measures to merge the county’s councils. The moves are said to allow the council the time to draft proposals for how the county and its 11 boroughs and districts will be dissolved and reborn as potentially a single authority with a directly elected mayor. Other plans could see the county split in two or three smaller unitary authorities in one of the biggest shake-ups in a generation.

In December, the Government placed councils on short notice over devolution plans, giving those who want to get on board until March to submit interim merger proposals. Those who do not will have their devolution plans dictated to them by Downing Street. To give councils time to reorganise, the Government also said it would consider passing legislation postponing the May 2025 elections until next year. On Wednesday, January 8, Surrey County Council confirmed it would pursue the Government’s offer, with conditions.

The move to push back elections, however, was disputed in the chamber with councillors calling it undemocratic, while the leaders of the 11 boroughs and districts have also called for the May polls to go ahead. Councillor Paul Follows, leader of the opposition, told the meeting the boroughs and districts made it very clear local government reform was necessary – but that it could be done alongside the democratic process. He said: “We accept and broadly agree that some unitary council combination would make sense for a variety of reasons but we believe that the pace, the haste, and the lack of plans should not just be folly but a clear threat to services our residents need, and we do not accept that elections must be cancelled.

“The Government aren’t asking us or making us cancel elections. The deputy prime minister confirmed in an interview [on Wednesday morning] that councils are not being asked this way.” He added: “The timetable is going to remain as is and the work is going to happen and we can do everything that the leader is proposing to do while holding the scheduled elections. The leader has argued that leaping in here brings benefits but nobody has outlined what they are and honestly whatever they are, unless they include defined government interventions on debt and adult social care, nothing is worth taking that leap because then any successor authority will be immediately in serious troubles.”

He would also raise concerns that without clear guidelines and financial support, scenarios where playing fields in Godalming could be sold off to pay debts in Woking could emerge. The ruling Conservative group, however, dismissed demands to keep the election saying it would not only cost millions – estimated at about £2.48m – but also elect a “zombie” body that would be dissolved in just a year’s time.

Councillor John O’Reilly (Conservative; Surrey) said: “This council is doomed. This council will not survive and the 11 boroughs and districts will also not survive. So we are talking about a new structure and framework and for those saying the election to go ahead, it is quite clear, the minister’s letter has said that those authorities where elections do go ahead, they have still got to provide submissions by autumn, leaving only a few months. So what is going to happen if we have elections? It will essentially be a zombie council in the twilight, lurching through its own oblivion maybe only a year or so later when elections will take place for the new authorities.”

Councils have until March to submit interim devolution proposals with final drafts delivered by either May or the Autumn. The council has said it will work with “all stakeholders” over the next eight weeks in drawing up plans, including residents, as well as taking feedback from police, fire and rescue, and health services. The Government states it wants new councils to have a minimum of 500,000 residents meaning it is most likely Surrey would become either a single mega authority or split in two – with a directly elected mayor.

Some councillors raised a preference to create three bodies. Councillor Tim Oliver did not rule out expanding beyond the Surrey border to create a regional authority but hoped that all parties could come to an agreement. He said: “We propose to make it clear that the Government will be asked to deal with the debt partially, Woking that is publicly known and crystallised, but there are other levels of significant debt across the county.” He said it was better to get in early to create some leverage over the debt position rather than be handed down a Government dictate.

He said: “Work will start on Friday – officers are putting together the working groups needed. This will be exceptionally time consuming. Not only will it need collaboration between the boroughs and districts, but this council will need to have an input into the proposals. We may go with more than one proposal, one from this council and one from the boroughs and districts.”

The county council leader will now write to the Government setting out that Surrey wishes to be part of the accelerated devolution program and that it would support any new legislation postponing the May 2025 elections until next year.

Related reports:

All change! Epsom and Ewell Borough Council approaching its final stop?

Surrey’s Conservative leader wants to postpone May’s poll reckoning

Tiers to be shed if Epsom and Ewell loses its Borough Council?


All change! Epsom and Ewell Borough Council approaching its final stop?

Surrey and Epsom Council buildings

Surrey is changing “whether we like it” or not and county council leader Tim Oliver says it’s better to be at the forefront of that change.

The Government wants to introduce new mayoral authorities across the country in a bid to streamline councils and shift power away from Westminster.

For Surrey, that means scrapping the 11 boroughs and districts as well as the county council, and replacing them with either a single, or what seems more likely, two authorities with a Strategic Mayor.

The question is how will it be done? The answer; it will either be imposed on Surrey, or the councils can create their own plans to merge under devolved powers.

County Council leader, Councillor Tim Oliver, favours playing a central role, arguing that change is inevitable, and it’s best to be part of the conversation in order to shape the future, rather than sit on the sidelines waiting to be told what to do.

The Government wrote to the county council in December outlining how it planned to “transfer power out of Westminster through devolution and to fix the foundations of local government.” It wants a simpler structure that is “clearer for residents” and said it would even pass new laws to postpone the May 2025 elections “to help manage” the once in a lifetime opportunity to restructure.

Writing to Surrey, Jim McMahon, minister of state for local government and English devolution, said: “We are under no illusion about the scale of issues facing local government. It is in all our interests to make sure we are avoiding unnecessary spend at a time when budgets are already tight.”

He added: “I have heard from some areas that the timing of elections affects their planning for devolution, particularly alongside reorganisation. To help manage these demands, alongside our objectives on devolution, and subject to meeting the timetable outlined in this letter, I am minded-to lay secondary legislation to postpone local council elections from May 2025 to May 2026. However, I will only do this where this will help the area to deliver both reorganisation and devolution to the most ambitious timeframe – either through the Devolution Priority Programme or where reorganisation is necessary to unlock devolution or open up new devolution options.”

Cllr Tim Oliver is already minded to take up the offer of pushing back the elections for a year to get devolution done. Holding the elections this year would cost about £1million, he says, and would take time away from officers already working to a tight five-month deadline to get devolution over the line.

“The Labour Government has set up their agenda in the white paper and that is to create Mayoral Strategic Authority (MSA) across England. They have a strong majority and we can assume they will pass the legislation,” Cllr Oliver said. “If you don’t reach an agreement locally, then they will legislate. It’s going to happen. It’s better that we try to control or have some influence over what happens rather than have it imposed on us down the line.”

“The primary focus should be ‘what is in the best interests of the residents of Surrey?’ Whether we like the model or not it is going to happen in Surrey and the reason for getting in early as we are, is that we are slightly unique here in that there are councils in Surrey that have significant debt levels.”

This, he says, gives the Government a huge stick, to push councils to get on board. Councils such as Woking are bankrupt and need Government intervention. Merging the councils would pile its £2billion debt on to others.

Similarly, though not bankrupt, Spelthorne Borough Council has debts of more than a billion and Runnymede has debts of more than £600m. Surrey County Council, albeit with significantly larger spending power as a top tier authority, is also heavily indebted.

Cllr Oliver said: “The longer we leave it, the less likely we will get any support from the Government. That’s what’s driving me.”

Historically, Surrey councils have not benefited as greatly as other local authorities from Government funding reviews and have to raise more money locally. Areas that can raise taxes will continue to be required to. Removing tiers of local government will be an efficiency driver and help stave off service cuts, or lead to more investment.

He said: “We have to divide up the county to create a minimum of two strategic authorities, and then we get a mayor. If we don’t get on with that reorganisation, we will be years away from the benefits of a mayor, compounded with almost certainly reduced funding to Surrey councils.”

Papers published ahead of the January 10 deadline to respond suggest the council leader will take up the Government’s offer to hold off on this year’s elections “to give time to consult.”

Cllr Oliver said: “If we go ahead with elections in May, and I’m fine with that, I wasn’t going to run again. But, ignoring who wins, you end up with an election in May that will cost over a million pounds, which they do, and then you will have a bunch of new councillors who have to find their feet, only to be out in two years when the council disappears. The next five months should be about the negotiation with the Government about what the future looks like.”

“Every political party, and all the existing councillors who know the county better, will have the opportunity to input. I can’t see what the Liberals, if they got a majority, would do differently? This way, we will get a bit of goodwill from the Labour Government by engaging with them now.”

“Hampshire, Essex, and Hertfordshire are already getting on with their own plans for devolution, and if Surrey County Council just puts its head in the sand and gets on with the elections we will miss the opportunity to have the conversation with the Government about the debt levels.”

“We’ve got five months to consider it, the key thing is to do an intensive piece of work now. We’re not at the point where we’ve had the conversation about how it’s split, but we’ve got five months to do this either the Government’s way or our way. Yes, the timetable is much shorter than anybody would want particularly putting a letter in by January 10 but we have to respect the fact that this Government has an agenda and it can deliver because it has the mandate.”

Later this month the Government will set out which areas will be included in its Devolution Priority Programme with a view to inaugural mayoral elections in May 2026. They are looking at creating new unitary councils with populations of 500,000 or more. Surrey has a population of about 1.2 million. Exceptions will be made to ensure new structures make sense for an area.

An extraordinary meeting of Surrey County Council is set to go ahead on Wednesday January 8 where the council will be “asked to note” that the leader intends to express interest in pursuing devolution and local government reorganisation.

Related reports:

Surrey’s Conservative leader wants to postpone May’s poll reckoning

Tiers to be shed if Epsom and Ewell loses its Borough Council?

Tim Oliver Surrey County Council leader – Surrey Live


Surrey’s Conservative leader wants to postpone May’s poll reckoning

Tim Oliver Surrey County Council leader - Surrey Live

The leader of Surrey County Council is set to write to the Government calling for the 2025 elections to be postponed in order to allow authorities to focus on merging under devolution plans. In December last year the Government announced its vision to merge councils in Surrey and get rid of its 11 boroughs and districts. There would also be a directly elected mayor.

Councillor Tim Oliver plans to formally ask the government to postpone county elections until May 2026 to give the councils time to “put together proposals for local government reform necessary to unlock further devolution for Surrey.”

Not everyone has welcomed the delay with Surrey Heath Borough Council set to discuss a motion rejecting the county council leader’s proposals and allow the May 2025 poll to go ahead “in the interest of democracy and hearing the resident’s voice.”

Devolution plans are part of sweeping changes to how services are run as Downing Street looks to reshape local government.

Surrey currently operates under a two tier system with the county council overseeing things such as education, transport and fire with the boroughs and districts focused local planning matters, refuse collection and housing.

Devolution would do away with this system and instead create single unitary authorities, arguing it is more cost-effective.

In a draft letter set to be approved at an extraordinary meeting next week, Cllr Oliver writes that he shares the ambitions for boosting the country’s economic prospects and reforms to strengthen the efficiency and effectiveness of public services.

He said it was clear that reforming local government would unlock the full benefits of further devolution for the county.

The letter reads: “The current two-tier structure of local government in Surrey, comprising 12 sovereign local authorities, is fragmented and in a number of areas inefficient which inevitably diverts resources away from delivering the services that residents rightly expect.

“I believe reorganisation would provide more streamlined and cost-effective services for Surrey, enabling us to achieve further efficiencies and deliver better outcomes for our residents and communities.

“Local government reorganisation is a crucial stepping stone to further devolution for Surrey, to enable our communities to take more control of their own destinies.”

Cllr Oliver said the county already delivered more than £50 billion in gross value added every year, but further and deeper devolution could lead to even better returns.

It adds: “I am therefore writing to ask you to exercise your ministerial powers to lay the necessary legislation to postpone the county council elections in Surrey, which are due to take place in May 2025.

This will give us the time to work with the leaders of Surrey’s district and borough councils to put together proposals for local government reform that are necessary to unlock further devolution for Surrey.”

New unitary elections could then take place in 2026, and a mayoral election in 2027.

He argues that the delay would also allow time to determine how to deal with the “significant financial risk of the level of debt currently held across the Surrey local government footprint.”

Woking Borough Council is currently bankrupt with deficit of more than £1billion and debts of about £2billion, while Surrey County Council and Spelthorne Borough Council both have debts of more than £1billion.

Any proposals, Cllr Oliver adds, will need to adequately consider how to ensure the sustainable operation of any authority in the absence of exceptional financial support from the Government or a level of write-off.

Timetable for Devolution 

10 January 2025 Letter submitted to Minister of State requesting election postponement 
Before March 2025  Minister’s response to letter received 
March 2025  Interim Local Government Reorganisation (LGR) proposal submitted to government 
May 2025  Full LGR proposal submitted to government 
May – June 2025  Government evaluates proposal(s) received for LGR and makes a decision on whether to proceed on  single proposal, or to consult further on one or more proposals
July 2025  Government consultation with affected bodies on LGR proposal(s) 
Autumn 2025  Government decision on LGR anticipated, which begins statutory process to establish new council(s) 
January 2026  Parliamentary process begins to lay Statutory Instruments 
May 2026  Elections to shadow unitary authority/ies 
Spring 2027 New unitary/ies ‘go live’ 
Spring 2027 or 2028 Mayoral elections and mayoral strategic authority ‘go live’, with the preparations for the establishment of the Mayoral Strategic Authority (MSA) taking place throughout 2026/27, or Surrey joins MSA with neighbours

Related reports:

Tiers to be shed if Epsom and Ewell loses its Borough Council?

Image: Tim Oliver – Leader of Surrey County Council, Woodhatch Place, Cockshot Hill, Reigate. GL


River Mole to attract visitors to Leatherhead?

Claire House and James House Watercolour (image McCarthy Stone)

Mole Valley District Council’s dream of “improving” and “enhancing” Leatherhead has taken a step forward after plans to regenerate Claire House and James House were submitted.

The site is part of the council’s vision for a new riverside area to attract visitors to spend time in the town centre.

The plans, submitted by McCarthy Stone the council’s preferred partner for regeneration, is for 37 one and two-bed retirement homes, a ground floor café and community space.

Developers McCarthy Stone said: “While the development is built around people in their later years this is not a development that offers care as you would find in extra care developments or care homes. 

“Retirement living creates safe and secure environments for homeowners to continue to live an active, independent life and caters for downsizers who are typically selling or vacating their former family home and moving to a smaller apartment. 

“Homeowners are generally the more active elderly rather than those who are in need of care or have more significant issues around mobility.”

McCarthy Stone also plans to improve the car park and landscaping the area to the front of the building. The work is part of the wider Transform Leatherhead project.

Councillor Keira Vyvyan-Robinson, Mole Valley District Council cabinet member for property and projects, said: “The Claire House and James House project aims to create a landmark mixed-use riverside development that will improve the western gateway to the town and enhance the area around the River Mole.

“The application marks the next step towards the regeneration of the area and enhancement of the riverside area, a key project of Transform Leatherhead.

 According to Mole Valley District Council, Leatherhead town centre is being re-invented, expanded and transformed.

It says the overall project, which also includes work on the retail and leisure quarter and Bull Hill, will “fully realise its potential as a distinctive, enterprising and highly regarded market town” adding that the “town’s character, history and environmental setting will be celebrated and complemented by new and revitalised uses.”

Not every aspect of the council’s vision has proven popular however. A petition calling on the authority to reconsider plans to build hundreds of homes in high rise blocks on the popular Bull Hill park gained 1500 signatures.

Some fear the plans will destroy the green gateway into the town, potentially turning it into another Croydon or Woking and causing people to leave.

Relared report:

Leatherhead town on the way up?


Tiers to be shed if Epsom and Ewell loses its Borough Council?

Surrey and Epsom Council buildings

Surrey could be split in two as part of sweeping changes to how services are run. Downing Street is looking to reshape local government and has set out a white paper outlining its vision. It wants to do away with two-tier systems of boroughs and counties and instead create single unitary councils. It argues this would not only be more cost-effective but also shift power away from Westminster. If devolution plans for the county go through, Surrey and its 11 boroughs and districts would be no more. The big question is: what replaces it? The most likely answer at the moment appears to be two councils with a directly elected mayor overseeing county-wide issues – these could include policing, fire and rescue, and transport.

The English Devolution White Paper says that new unitary councils “must be the right size to achieve efficiencies, improve capacity and withstand financial shocks. For most areas, this will mean creating councils with a population of 500,000 or more, but there may be exceptions to ensure new structures make sense for an area, including for devolution, and decisions will be on a case-by-case basis.” Surrey has a population of 1.2 million, and a single “mega-council” stretching from Farnham to Oxted, an area larger than Greater London, would simply be too vast, some have argued. This leaves the most likely option of merging the current boroughs of Tandridge, Mole Valley, Reigate & Banstead, and Epsom & Ewell into East Surrey Council, with Woking, Guildford, Spelthorne, Runnymede, Surrey Heath, Waverley, and Elmbridge forming West Surrey Council.

The white paper also argues: “Unitary councils can lead to better outcomes for residents, save significant money which can be reinvested in public services, and improve accountability with fewer politicians who are more able to focus on delivering for residents.” However, opponents argue devolution could push residents further from the decision-making process and only delay funding reforms for local government.

Will Forster, newly elected MP for Woking, expressed his concerns: “I don’t think that having a single mega council is a good idea. Camberley to Oxted is far too large, there are huge differences east to west. It’s too large and remote. A single council would be too vast. That’s not devolution, that’s not empowering people.” Even the idea of a West Surrey Council would create a single area stretching from Haslemere to Staines. He added: “It also ignores the elephant in the room, social care – this seems to be the Government’s way of ignoring that. They want authorities of 500,000 or more. You look at a map, you do the sums. That’s clearly an east and west split. They’ve never divided up a borough or district and you can’t do north or south.”

Other questions would need to be answered as well, such as how the directly elected mayors are held to account. At the county level, the council holds regular meetings to vote on decisions, with scrutiny committees playing a further role. How this would be replicated for a single mayor is yet to be made clear. Councils have been invited to submit proposals to the government in January.

Tim Oliver, leader of Surrey County Council, welcomed the devolution paper and its “bold ambition to empower local communities and councils.” He said: “The government has set out an agenda for change, including potential reorganisation of local government, particularly in two-tier county areas like Surrey. I believe there is general consensus that the current structure – here and elsewhere in the country – is not the most effective. Therefore, we welcome a real examination and review of how local government is organised to make it more efficient and more effective for residents. We intend to work alongside government, and other partners locally, and ensure any change ultimately benefits the people of Surrey.”

Announcing the paper’s publication, Deputy Prime Minister Angela Rayner stated: “Our manifesto pledged to give everyone access to devolved power. So I will legislate for a new power of ministerial directive – which will allow central government to knock heads together and create strategic authorities when local leaders cannot agree. If we are going to build an economy that works for everyone, we need nothing less than a completely new way of governing – a generational project of determined devolution. Because the Westminster system is part of the problem. Whitehall is full of layers of governance and bureaucracy, controlled and micromanaged from the centre. To truly get growth in every corner of the country and put more money into people’s pockets, we must rewire England and end the hoarding in Whitehall by devolving power and money from central government to those with skin in the game.”


Epsom and Ewell’s new housing targets in Surrey perspective

New houses in Epsom

Housing targets in Surrey are set to skyrocket, with some areas expected to deliver double the number of homes under new Government plans. On December 12, the long-awaited update to the National Planning Policy Framework (NPPF) was published, setting out what councils and developers can and cannot do – leaving boroughs and districts “disappointed” and “deeply concerned.” Across Surrey, the number of new homes expected each year has risen by 4,635 to a total of 10,981, with some areas bearing a significantly heavier load than others.

Worst affected is Elmbridge Borough Council, where housing targets have more than doubled, from 653 to 1,562. This increase comes alongside the prospect of having no local plan, giving developers greater freedom over where and what to build. A spokesperson for Elmbridge Borough Council said they were “reviewing the new NPPF and its implications for Elmbridge’s Local Plan.” The council was told in November that its housing strategy must be withdrawn and restarted or risk being deemed “unsound.” A decision on next steps will be made in February 2025.

Other boroughs facing substantial increases include Waverley, where targets have risen from 710 to 1,481, and Reigate and Banstead, which sees an increase from 644 to 1,306. Woking, the only council to see its figure drop, still faces a significant rise from 436 to 794. These adjustments align largely with July consultation targets. However, Woking residents hoping for a break in town-center skyscraper developments and green belt preservation will be disappointed, as the reduction amounted to just one unit from the earlier proposal.

Housing targets for Surrey boroughs under the new NPPF are as follows:

Old housing target New NPPF target % increase
1 Elmbridge 653 1562 139
2 Surrey Heath 320 684 114
3 Waverley 710 1481 109
4 Reigate & Banstead 644 1306 103
5 Woking 436 794 82
6 Mole Valley 460 833 81
7 Guildford 743 1170 57
8 Epsom & Ewell 569 889 56
9 Tandridge 634 843 33
10 Spelthorne 631 793 26
11 Runnymede 546 626 15
SURREY 6346 10981 73

Reigate and Banstead Borough Council’s executive member for planning, Councillor Rich Michalowski, described the Government’s decision not to heed their feedback as “disappointing.” He said, “The borough’s housing target in the new NPPF of 1,306 homes per year is nearly three times higher than our current local plan target of 460 and more than double the previous NPPF target of 644 homes. These changes will have severe implications for Reigate and Banstead’s green belt and the character of our towns and villages. The standard methodology for calculating housing is flawed, as it doesn’t account for environmental and infrastructure constraints.” He emphasized the council’s commitment to exploring all urban development options but acknowledged that a Green Belt Review might be unavoidable.

Waverley Borough Council echoed these concerns, particularly regarding the methodology and its impact on green belt. Cllr Liz Townsend, Waverley’s portfolio holder for planning, called the more than two-fold increase “unrealistic and uncalled for.” She noted that the requirement for 1,481 new homes annually is two and a half times the current target and could increase the borough’s population by 50% over 20 years. “There is simply no evidence of this level of demand, nor that building this many homes would make them more affordable,” she said. Cllr Townsend highlighted the borough’s existing issues, including water supply disruptions, sewage overspills, a crumbling rural road network, overstretched health services, and power shortages stalling new developments.

All councils must now face the new reality as their starting points for planning new homes. Each borough will need to demonstrate to Independent Planning Inspectors that they have explored all possible avenues for delivering these targets. This challenge will require balancing housing needs with environmental, infrastructure, and community considerations.

Related reports:

Can Epsom and Ewell get more dense?

The Local Plan plot thickens after revised NPPF

Can the green light to Epsom’s Green Belt housing turn red?

Campaigners have set up a petition against the new targets:

https://www.change.org/p/excessive-targets-for-new-homes-in-surrey


Surrey: Free school buses withdrawn

Surrey County Council\'s recommended safe route to Esher High School (image Palamena Naydenova)

Free school buses are being axed after a cross-country route was judged safe by Surrey County Council. Parents say the letter outlining the new walkable route explicitly states that the “personal safety issues of children travelling alone” were not considered. About 81 children from Esher High School are said to be affected. Compounding the problem, the council has stated that further funding to increase capacity on regular bus services is not available.

The Local Democracy Reporting Service understands parents are appealing the decision and have been in touch with Surrey Police. This comes just weeks after parents in South Nutfield were told children could walk across open rail tracks and flood-prone cow fields as the county council looks to make further service cuts.

Children who live more than three miles from their nearest school are eligible for free buses. The new route across the heath reduces the distance to just under that mark, meaning the children no longer qualify for the service. The council says the move will save about £180,000 per year and create space on “stretched coach resources to provide travel assistance to those eligible.”

One of the affected parents, Plamena Naydenova, received a letter that included directions on how her children could get to school, with 30 separate steps to follow. Among the instructions were phrases like “take the alleyway,” “follow the footpaths through Molesey Heath Nature Reserve,” and “turn right through the squeeze stile.” Later, children are told to “cross the River Mole Viaduct Sluice.”

Mrs. Naydenova said: “How can you call an 83-minute walk through dark heaths and unlit river paths a safe route? It’s just honestly outrageous, the whole thing. It isn’t about one child, it’s a principle. It will affect many families, not just my two children. I walked it with my sister as I was afraid to walk it on my own. It goes through narrow alleyways, fields, mud along the embankment of the River Mole, with no fencing.”

She added: “The bit that annoys me the most is the word safe—or safe for an accompanied child. Parents must accompany them, but the council doesn’t see that other parents have other children to drop off or work commitments. I would need to leave the house at 7 a.m. to get to Esher. How would I get the other children to school, never mind my work commitments? It’s very, very shocking. We all know it’s about the money and cost-cutting. But be honest and transparent—say ‘we can’t afford to pay anymore,’ not that there’s a new safe route.”

Since the shock email, parents have banded together. They understand about 81 other students have been impacted. Very few are expected to take on the route and, if their appeal fails, will instead use the standard bus network—although these services, she said, are often full, leaving school children at stops.

Mrs. Naydenova said: “It will put a lot of pressure on the existing paid buses. We aren’t going to let them walk across the heath. We only have one car, so the only other option is cycling, but how safe is that?”

Travel assistance will run until the end of the school year, but from September 2025, children will need to find alternative routes unless there is a change.

Surrey County Council’s cabinet member for children, families, and lifelong learning, Councillor Clare Curran, said the route to Esher High School was established following “individual safe walking route assessments” applied in line with national guidelines. She explained: “It is important to note that the guidelines consider the relationship between pedestrians and traffic, and assessments are undertaken on the assumption that the child will be accompanied by an appropriate adult if necessary. The Department for Education‘s own school transport guidance also supports this position. It is suggested that suitable footwear and a torch are used where needed.”

She added: “The council provides contracted coaches to those eligible for travel assistance to Esher High School. By limiting the services only to those eligible in line with statutory guidance, the council expects a cost saving of approximately £180k per year, as well as the benefit of utilizing the stretched coach resources to provide travel assistance to those eligible. The national picture is of increased demand on transport services and therefore council budgets. We spent £64.9m in 2023/24 on home-to-school travel costs for around 10.7k children and young people.

“We take our responsibilities regarding home-to-school transport very seriously; however, we must balance this with our duty to ensure we are only using public funds for those who meet statutory guidelines for free transport or who are most in need of assistance. Amidst a set of challenging financial circumstances, the council is not in a position to continue to pay for transport for families where they are no longer eligible for assistance due to a safe route being established.”

Related report:

Surrey school kids’ country walk saving money

Image: Surrey County Council\’s recommended safe route to Esher High School (Palamena Naydenova)


Examination of a Surrey Borough’s 2nd highest UK debt

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

The review into Spelthorne Borough Council’s £1 billion debt and whether it is upholding its duty to provide best value to residents has been extended. In May, the government wrote to the heavily leveraged local authority, the second most indebted borough council in the country, over concerns surrounding its debt conditions and financial management arrangements. It has now written again to say it is extending its deadline until January 31, 2025, with the scope of the inspection remaining unchanged. The Government first began engaging with Spelthorne Borough Council in May 2022 over its capital risk, and the review covers concerns over how the council is governed, the strength of its audits, scrutiny and risk arrangements, and in particular its finances. Its debt is second only to bankrupt Woking among borough councils.

A Spelthorne Borough Council spokesperson said of the delay: “The snap general election earlier this year interrupted the appointment of the Best Value Inspection team. The delayed appointments have had a knock-on impact on the original timeline, which has resulted in this extension.” The council’s extremely high levels of debt and borrowing, as of March 2023, stood at £1.1 billion, which is 87.1 times the borough’s core spending power (CSE) and 52.4 times its total service expenditure. By comparison, the average CSE for councils such as Spelthorne is 5.6. Spelthorne has followed a similar path to other Surrey authorities such as Woking, Runnymede, and Surrey Heath, borrowing vast amounts to fund regeneration projects in the hope of creating long-term revenues. Many councils have used this to stave off real-term cuts to their spending power and maintain services residents value. The problem arises, as in Woking’s case, when local authorities can no longer afford to pay back their loans, or if income from the investments is too low. While Spelthorne Borough Council has not yet reached that stage, the Government is seeking assurances that its long-term position is secure.

Between December 2016 and August 2018, Spelthorne Borough Council bought eight investment properties for a cost of about £1 billion. It borrowed largely from the Public Works Loans Board to generate income that supports its revenue budget, enabling it to maintain a wide range of discretionary services. As of December 31, 2022, the council’s total borrowing stood at some £1.1 billion, with £1.08 billion from the Public Works Loans Board—the same body that lent to Woking Borough Council and numerous others. The council plans to borrow a further £332 million between 2023 and 2027, with most of this spread across the next two financial years, and has set its authorised borrowing limit at £1.45 billion for the next four years. The Government has also highlighted a KPMG Public Interest Report on the council’s 2017/18 accounts, published in November 2022, which raised concerns about Spelthorne’s investments and stated the auditor’s view that the authority acted unlawfully in borrowing to purchase three properties in 2017/18.

The vast majority of Spelthorne’s property portfolio, 95 percent, consists of office buildings, with just ten tenants accounting for 75 percent of its lettings income, and one tenant—BP—providing £18 million in rental income annually. About half of its leases end within 10 years and 94 percent within 15 years, creating pressure to retain key tenants. This reliance was highlighted when the loss of a previous tenant resulted in a £4 million loss, including £2.4 million linked to a Russian-owned tenant affected by Russia’s invasion of Ukraine. A July 2023 report noted: “Although Spelthorne Borough Council has effective mitigations in place, this cannot provide complete protection. The loss of a major tenant can impair commercial income.” The council is projected to face an income shortfall of £10 million over the next two years due to these challenges. Additionally, the devaluation of its assets adds to its risks. Spelthorne spent £952 million on eight major purchases that collectively were worth £882 million as of 2022, with only the Sunbury Business Park increasing in value, rising from £384 million to £387 million. However, this gain is overshadowed by losses, such as the Charter Building in Uxbridge, purchased for £135.98 million but valued at £99 million. These devaluations mean that if the council needs to sell assets, it could face a significant deficit.

Despite these challenges, the council insists that the rental income from its commercial property portfolio exceeds financing costs and contributes significantly to discretionary services. “Annually these contribute approximately £10 million net to the council’s revenue budget, enabling the council to continue delivering services that would otherwise have to be cut, including valued services such as Meals on Wheels or community centres,” stated a Chartered Institute of Public Finance and Accountancy report. The same report, titled the Spelthorne Borough Council Review of Debt/Investment Risk Profile July 2023, also warned of a significant budget deficit of £9.306 million projected over the next three financial years. Responding to the original best value review, a council spokesperson said: “We welcome the independent review and will work with the inspector and her team. This administration has taken many decisive and positive steps since the May 2023 election, including instigating a full external independent review of our commercial property portfolio. Additionally, we have reduced future borrowing requirements by nearly £200 million and are pursuing alternative ways to deliver more affordable housing. We will continue to work with (the government) in an open and transparent way and look forward to receiving the findings of the report. The rental income received from our commercial property portfolio more than covers the financing costs and provides a significant contribution to support council services, additionally, there is a reserve to cover possible income variation in future years.”

Related Reports:

Spelthorne in financial trouble

Spelthorne’s neediest lose out on housing

Spelthorne’s thorny property problems spelt out

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