Spelthorne Borough Council has been warned it must sell off its commercial property empire fast or risk losing tens of millions of pounds and plunging even deeper into financial crisis. The financially-stricken authority agreed on November 17 to overhaul the way it repays its £1.1bn debt, adopt a new debt-repayment policy ordered by government commissioners, and start a rapid sell-off of its investment portfolio.

If the council delivers the plan on time, it could strengthen its budget by around £37m over the next decade, thanks largely to a £361m discount for repaying long-term Public Works Loan Board debt early. But the window to the cash in is narrow. Council officers say that slipping just six months behind schedule would slash the benefit to £12m, and a 25 per cent drop in sales prices could wipe out around 60 per cent of expected gains. The message from senior officials was blunt: delays are dangerous.

The warning triggered fierce rows in the chamber. Conservative councillors argued members still lacked key information and should not be rushed into decisions with such huge consequences. Cllr Margaret Attewell said the analysis so far was “all interpretation and it is not right”, calling for more advice before committing to the strategy.

But others insisted hesitation would be reckless. Cllr Howard Williams said rejecting the new repayment policy would be “the most irresponsible thing this council could do”, warning that commissioners could seize control and force a fire sale if Spelthorne failed to act.

Tory members remained unconvinced. “I don’t see how Spelthorne residents are going to be the winner in this,” said Cllr Sinead Mooney. “Why rush this through now?” Cllr Karen Howkins added that councillors had once believed their previous investment decisions were sound and could not be certain history wouldn’t repeat itself.

Behind the political clash lies a collapsing property empire. The council bought £1.077bn of commercial buildings over several years; they’re now valued at just £552m. Selling them is essential to meet government demands, but the council must still prove it is getting “best value” for every disposal.

The financial strain will be felt quickly. The amount Spelthorne must set aside for debt repayments, its Minimum Revenue Provision, will jump to £59m next year before slowly dropping to £9m over the next decade.

With stakes this high, the council plans to hire external property specialists to handle valuations, marketing and negotiations, admitting its in-house team is far too small to manage such a vast sale programme.

What this all means for residents is still unclear, but councillors warned cuts and higher council tax are almost inevitable. “We’ve looked purely at the financial side,” said Cllr Paul Woodward. “We have no idea what impact on our residents this is going to be.”

Emily Dalton LDRS

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

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Epsom and Ewell Borough Council’s Strategy and Resources Committee has formally abandoned the plan to relocate the Town Hall to East Street, voting on 11 November to remain in the existing building until Local Government Reorganisation in 2027. The meeting also agreed to recommend a 3% staff pay award for 2026/27 and to support adoption of the Real Living Wage.

The decisions reverse the direction taken in earlier years which saw the Council identify 70 East Street as the future civic office site, a plan covered previously by the Epsom and Ewell Times. The East Street building will now instead be declared surplus and placed on the market.

Town Hall stays put

Members unanimously approved Option 1, an approach which keeps both the New and Old Town Hall buildings in use with only legally-required and essential health and safety works carried out. Officers advised that the council must now implement recommendations from the building’s fire risk assessment, previously deferred when a move to East Street was expected.

The work will cost £431,000, with a total capital provision of up to £517,200 once contingency is included. A further deferred-liabilities fund could be needed if ageing equipment fails during the next two to three years.

With Local Government Reorganisation due by April 2027, the report said investing more heavily in a short-term location would offer poor value. Options involving the Old Town Hall’s closure or bringing the decommissioned second floor of the New Town Hall back into service were judged significantly more expensive.

Sale of 70 East Street

Under a later agenda item, the Committee agreed that 70 East Street should be declared surplus to operational requirements and prepared for sale with a budget of up to £10,000 for marketing and upfront costs.

This effectively ends the former civic office relocation project. Surrey County Council’s departure from the second floor of the New Town Hall, the worsening condition of parts of the estate, and the uncertainties of a possible unitary-authority future all contributed to the reassessment.

Staff pay award: 3% recommended

The Committee unanimously backed recommending a 3% pay increase for 2026/27, alongside granting all staff an extra day of annual leave. Officers reminded councillors that the September CPI stood at 3.8% and that around 18% of staff at the top of their pay scales would not receive incremental rises.

Members also supported adopting the Real Living Wage from April 2026. The financial impact, estimated between £35,000 and £68,000 depending on next year’s National Living Wage, will be built into the Council’s Medium Term Financial Strategy.

Coley raises concerns over transparency and financial risk

During the public session, Cllr Alex Coley (Independent Ruxley) spoke to highlight his continuing concerns about the handling of major financial decisions, particularly those arising from Local Government Reorganisation. He noted that asset-transfer discussions risked obliging future parish-level bodies to take responsibility for community facilities without councillors being given the information they needed about long-term maintenance liabilities.

He told the Committee he had attempted several times to obtain estimated maintenance costs and values for potential transfer assets and warned of “blank cheques with unknown risks and liabilities” that could fall on residents through an uncapped parish precept.

Cllr Coley thanked the Section 151 Officer for constructive engagement on reserve reviews but cautioned colleagues not to proceed with decisions without full supporting data.

His remarks contributed to a wider discussion later in the meeting, after the press and public were excluded, on the Council’s strategic priorities and preparation for possible reorganisation.

Funding pressures still ahead

Officers confirmed that the 3% pay award would increase the projected 2026/27 budget deficit to around £2 million, with work continuing to close the gap before the February Full Council budget.

Councillors approved all recommendations put before them on the evening.

Sam Jones – Reporter

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A new Town Hall for Epsom and Ewell?

The government’s whopping £500m bailout for debt-ridden Woking Borough Council may not be the last. The cash injection, announced as part of Surrey’s local government reorganisation on October 28, will cover roughly a quarter of Woking’s debt. But ministers have described it as only the “first tranche” of support. Surrey County Council leader Tim Oliver said commissioners appointed to oversee Woking’s finances are still selling off property assets to reduce the total debt and the government has left the door open to further payments.

“They’ve called it a first tranche. So this is £500 million now to get on with selling down the assets, reducing the debt as much as you can, and then we’ll have a conversation about that balance,” he told the Local Democracy Reporting Service. “The expectation is that whatever the rump of the debt remains, the government will pick it up.”

Woking’s debts, which peaked around £2bn, stem from a series of risky property investments that left the council effectively bankrupt. The government’s intervention prevents the shortfall from being passed on to other Surrey residents, something Cllr Oliver said ministers have been “very clear” would not happen. “It’s nobody’s fault, least of all residents’, but they were at risk of being penalised just for living in the wrong place,” the council leader said. “We worked hard to make sure that didn’t happen.”

He added that securing government support for Woking’s debt was a collective effort between Surrey’s council leaders and MPs. Cllr Oliver added that ministers were keen to stress Woking’s situation was “exceptional” to prevent other indebted councils seeking similar bailouts. Although Woking council may be able to breathe a slight sigh of relief with the government’s handout, residents are still left wondering what will happen with the rest of the debt across Surrey.

Cllr Oliver said the coming months would be focused on “getting the detail right” and ensuring that the reorganisation delivers simpler, stronger local government. “It’s great to get a decision, but now the hard work starts,” he said. “We’ll make sure this works for residents and that the government honours its commitment to clearing Woking’s debt.”

The announcement came alongside confirmation that Surrey will be split into two new unitary councils, replacing the current county and district system by 2027. While more than half of those who responded to the public consultation backed a three-way split, ministers said the two-unitary model was “more likely to be financially sustainable”. Local government minister Alison McGovern said the decision “does not set any precedent” for other areas, but acknowledged Surrey’s “unique financial context”: a hint that more support could still be needed. The Ministry of Housing, Communities & Local Government have been asked for comment.

Emily Dalton LDRS

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Image: Woking Victoria Square Towers (View From North)

The “behemoth” that is Dorking Halls has been labelled a “black hole” that sucks in all resources around it after an additional £3.34million in maintenance work was approved.

The new money comes on top of the originally agreed £11.2m the refurbishment project was expected to cost after delays and lead paint saw the bills spiral.

The work has been labelled as essential by those who see the building as a Dorking icon that must be preserved for future generations. Critics have accused Mole Valley District Council of treating the public purse like ‘Monopoly’ money.

The decision was made at the October full council meeting where the second stage of the project was signed off and confirmed Dorking Halls would again close, this time from April 2026 through until early December.

Councillor Nick Wright, cabinet member for leisure and community assets, said: “Dorking Halls is the largest publicly owned performance venue anywhere in east Surrey.

“Dorking Halls typically gets about 180,000 visitors, there are over 60,000 registered customers of which only about half live in Mole Valley.

“Of the Mole Valley residents, approximately one third have postal codes in Dorking itself, 26 per cent from Leatherhead and the north of the district, and about 40 per cent from rural areas. So the Halls really do serve the entire Mole Valley community.

“But it’s not just Mole Valley, with its 900 seated grand hall plus two other halls, two cafe bars and a conference room, this is the largest performance venue anywhere in Surrey and it’s owned by us, the public. This iconic building should and must be cherished and preserved for future generations.

“It’s old, it’s built in 1931, but it has national significance as a venue for classical and choral music and now embraces everything from rock pop musicals, theatre pantomime, comedy lectures, to cinema and circus.”

The building came into public ownership in 1947 and had its first big upgrade and expansion in the 1990s when much of the current tech was installed.

He added: “But after 30 years of continuous daily use, it was showing its age, breakdowns were occurring and running costs increased.” The council had originally approved £11.2million of spending across the two phases; the first was completed late last year in time for the Christmas panto season.

Costs leapt when lead paint was found in the building and needed to be removed – so the council has had to top up the pot with an additional £3.34m this time around. The phase one work concentrated on replacing the ceiling of the grand hall which was failing but the discovery of the toxic paint made the entire project more complex.

This time the council will upgrade the Halls heating cooling, air-conditioning and electrical systems – as well as the technical infrastructure inside the grand hall – bringing it up to modern standards. Council said the extra costs of phase one, together with three years of inflationary pressures has meant a further £3.34 million is needed to finish the job.

The money also includes a one-off “unavoidable growth” of £584,000 to cover the loss of earnings during the Halls’ closure. Cllr Wright said: “Without phase two this building would run the risk of falling into disrepair”.

Cllr Chris Hunt (Independent: Ashtead Lanes and Common), said was one of the first to speak out against the added costs. He said: “This isn’t fair on council tax payers. Nobody is saying it’s a bad building. I was arguing that the scheme should be built quicker. The administration said ‘no slow it down’, they have got to be responsible to this overspend, this monopoly (money) approach to council tax.”

Cllr Patricia Wiltshire (Independent: Ashtead Lanes and Common) said: “This is a massive, massive, overspend and there are people in Mole Valley who are desperately resentful of all these resources going into this one building. Every time we ask for something, little things we get told ‘there’s no money’, or ‘the budgets are too tight’.

“Yet here we are with this behemoth of a building, like a black hole absorbing the resources going into it. It’s a nice venue, it’s useful, people enjoy themselves, but don’t kid yourself that every single person in Mole Valley enjoys it or uses it. It’s a relatively small number in comparison to the whole population.

She added that the burden should fall on those who use Dorking Halls instead and that, if you want to go to the theatre you should pay without expecting everyone else to cover the cost.

Defending the project however was Cllr Stephen Cooksey (Liberal Democrats : Dorking South). He said: “It’s a big chunk of money but if we don’t spend it we could lose Dorking Halls.”

Chris Caulfield LDRS

Image: Dorking Halls – Google.

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Epsom and Ewell Borough Council is currently carrying 56 vacant posts, according to figures released under the Freedom of Information Act. The disclosure sheds light on the staffing challenges facing the Borough at a time when discussions continue over local government reorganisation (LGR) across Surrey.

The Council confirmed that five senior officers have left since April 2022, with all but two of those positions permanently replaced. Two roles were deleted as part of an internal reorganisation.

Despite the vacancies, the Council reported no “vacancy savings” for the current financial year. In previous years, however, unfilled posts generated savings of £286,000 in 2023/24 and £340,000 in 2022/23.

EEBC’s expenditure on agency, consultant and temporary staff remains significant, totalling £1.47 million so far in 2024/25, following £1.76 million in 2023/24 and £1.89 million in 2022/23.

The figures show that Operational Services consistently account for the largest share of agency spending — around £985,000 this year — followed by Property Management (£181,000) and Venues (£130,000). Other notable areas of spending include Community Services, Environmental Health, Finance and HR.

No senior management posts are currently filled by consultants or agency staff. The Council also said it holds no internal reports identifying recruitment difficulties or pressures linked to potential LGR changes, and no shared service arrangements have been entered into as a result of staffing shortages.

While EEBC stated it aims to operate “as an open, transparent authority”, the figures highlight the extent to which local authorities are relying on temporary staffing amid wider uncertainty over Surrey’s local government future.

Sam Jones – Reporter

Has Surrey become Britain’s sinkhole capital? Well, the figures certainly point in that direction.

Surrey County Council is on track to spend a staggering £1.6m fixing the collapsed 65ft hole in a section of Godstone High Street – a bill that dwarfs what most local authorities spend on sinkholes.

Figures obtained through Freedom of Information (FOI) requests show councils across the UK have spent more than £6.2m tackling over 7,000 sinkholes since 2020. But Surrey alone accounts for almost half of that total, shelling out over £3.1m making it by far the country’s biggest spender.

The Godstone collapse, which first appeared in February, has left the part of the High Street shut for months and businesses struggling.

Surrey County Council has already spent £850,000 on emergency responses, surveys, roadworks and consultancy fees, including £360,000 on just site establishment.

Another £800,000 is forecast for stabilisation work, filling in the mine tunnels, and further repairs – taking the final bill to £1.65m. This will amount to just over a quarter of the total UK bill on sinkholes for the last five years.

What is driving the cost?

The British Geological Society has stated that Surrey is particularly prone to sinkholes due to the underlying sands in the county, which are weakly cemented.

According to council documents, the ground beneath Godstone sits on the Folkestone Sandstone Formation – a weak, sandy foundation that made the area vulnerable to collapse. CCTV images provided under FOI request confirm the collapse was worsened by an old sand mine tunnel running beneath the High Street.

While the council insists the road should reopen by December 16, locals are not holding their breath. Residents have been struggling for months with the road closure, diversions, fall in trade and general feel of chaos. That being said, an official report shown to SurreyLive by the council does state that the project is tracking towards a final inspection date of December 16th.

A Surrey County Council spokesperson said: “This continues to be a highly complex incident involving a number of investigations led by our Highways Officers and other agencies, including specialist teams and utility companies.

“Work is underway to reconstruct the final footpath affected by the collapse and we’re now planning how we stabilise the collapsed area and fill in the tunnel network.

“We are updating local residents and businesses as we progress through each stage of the process and expect the final two residents to be back in their properties by the end of September.

“Once our stabilisation work and the SES works to reconnect and relay the mains through the collapse area are completed, the area will be refilled and repaired permanently. We are currently planning to complete our repairs and reopen the High Street during December.”

A nationwide problem

The Godstone collapse may be dramatic, but it’s part of a wider and growing problem. Since 2020, sinkholes have been recorded everywhere from Reading to Scotland, with councils spending millions to patch them up.

The top spenders after Surrey include Reading (£976,500), East Sussex (£767,238) and Transport Scotland (£602,000). If you take away the Godstone sinkhole expenditure, Surrey still comes up top with over £2.2m being put towards sinkholes.

Lloyd Allen, Infrastructure Team Manager for Surrey County Council, on Godstone high street. (Credit: Surrey County Council).

Emily Dalton LDRS

Additional reporting from Sam McEvans

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A bid to raid a Epsom and Ewell council’s multi-million pound property reserves to pay for crumbling public buildings has been thrown out by councillors.

Epsom and Ewell Borough councillors blocked a move to dip into a £7m ‘rainy day’ fund to pay for important repairs to community venues.

Opposition councillors argued that money locked away in the ‘property income equalisation’ (PIE) reserve could be better spent fixing leaky roofs, broken boilers and delayed upgrades at places like Bourne Hall, the playhouse and the Harrier Centre.

Cllr Alex Coley (Independent Ruxley) told a Strategy and Resources Committee meeting on September 25: “Why prioritise handing over a well- financed property empire to a new unitary at the cost of the huge burden of deferred works on our crumbling public buildings? Do we want to see our venues sold off or handed over to charitable trusts and then closed soon after because they can’t afford much needed repairs?”

Cllr James Lawrence (LibDem College) backed the call, saying the council’s property income was now more secure and that modestly trimming the reserve could free up £1.5m to plug the gap in the capital budget: “We’ve come out of COVID uncertainty and we’ve got secure rental income.” He argued the council can safely reduce reserves and use the money to fund the projects residents actually need.

But senior councillors and officers pushed back hard, warning that the reserve was vital to protect the council from sudden losses if tenants went bust or properties stood empty. They said cutting it down to £1m would be “reckless” given the risks tied to £64m of commercial property borrowing.

Council leader, Hannah Dalton, (RA SAtoneleigh) said: “You kind of need to take a whole system to view and not just pick bits out.” She explained the council is working through the assets and reserves and will continue to work, keeping members updated.

Cllr Dalton said: “We’re also waiting to see what the fair funding review could mean for Surrey alone. They’re thinking there could be a deficit of 45 million pounds in the county so we’re having to look at everything.”

Cllr Neil Dallen (RA Town) said: “We’re in the unusual position of not staring at bankruptcy like other councils — and that’s because we’ve been prudent. We’ve got reserves to cover things that have gone wrong and things have gone wrong and the reserves have actually been used to satisfy that.”

Council finance chiefs also reminded members that a full review of reserves and council-owned assets is already under way, with results due in November.

The Section 151 officer confirmed that if reserves are found to be “over-prudent”, some money could be released for other priorities, and that selling off struggling assets remained an option.

An attempt to water down the proposal — including disposing of 70 East Street and using the cash to top up building repairs — was also rejected. In the end, councillors voted to “note but take no action” on the motion.

Epsom and Ewell Borough Council town hall. (Credit: Emily Dalton/ LDRS)

Emily Dalton LDRS

Surrey Heath Borough Council is accelerating the disposal of local assets to reduce its debts, with both car parks and town centre shops now on the block.

At its September executive meeting councillors agreed to sell part of Yorktown car park in Sullivan Road, Camberley. Seventy-three of its 137 bays will go, leaving 64, after officials reported average daily use of only 43 vehicles. The site generates just £9,000 a year – £1.26 per bay per week – and is earmarked for housing in the borough’s local plan. The sale is expected to provide “much-needed capital” before year end.

The same meeting also approved the disposal of a two-storey retail block in Obelisk Way. Despite being fully let to three shops and producing a gross rental income of £45,000, once landlord costs and service charges were taken into account the site posted a net loss of £4,500 last year. Substantial repairs were also looming. Councillors decided the 15,564 sq ft property, which includes eight parking spaces, would be “more valuable sold than retained” and could be converted for mixed residential use.

The council must cut £1.74m from its budget this year and £3.14m overall, alongside reducing interest payments on external debt and making a further £500,000 from service reviews. Cllr Kel Finan-Cooke, portfolio holder for property and economic development, said the financial case for both sales was “compelling”. Conservative deputy leader Cllr Jonny Cope called the Obelisk Way disposal “sensible”.

The sales place Surrey Heath in a wider national picture of local authorities struggling to balance their books. Years of shrinking central government funding, soaring social care costs and inflationary pressures have driven several councils close to collapse. Woking, Birmingham, Thurrock and Croydon have all issued effective bankruptcy notices in recent years, with asset sales and service cuts becoming the default response.

Critics warn that one-off disposals risk stripping town centres of public assets for good, but supporters argue such sales are unavoidable if councils are to stave off financial failure and protect statutory services. For Surrey Heath, further reviews of underperforming sites are expected as the borough seeks to navigate its way through England’s growing local government funding crisis.

Sam Jones – Reporter

Council tax bills could keep climbing despite warnings residents could be getting less bang for their buck. Surrey’s Police and Crime Commissioner has insisted she “will not ask the public to be less safe” as she defended plans to raise council tax for policing. 

At a Police and Crime Panel meeting last week (September 4), PCC Lisa Townsend explained the decisions on the annual precept rise were driven by the Chief Constable’s assessment of what the force needs to keep the country safe.

“It’s not me plucking a figure out of thin air,” she told councillors. For Ms Townsend, the choice is clear: “Surrey Police are cutting their cloth, but what I am not prepared to do is ask the public to be less safe.”

Surrey Police must find £14.8m savings by 2029 with pay (which makes up 80 per cent of its spending) ramping up costs, a report states. Each 1 per cent pay rise for police officers adds £2.4m to the budget, equivalent to £4.80 on the average council tax bill. 

The report revealed: “Whilst the force is making every effort to not impact services as a result of savings required, there is a risk that this will not be possible”. 

Ms Townsend’s comments came after councillors questioned whether constant tax rises could be justified when Surrey Police must still deliver sweeping budget cuts to balance its budget. 

Cllr Richard Wilson challenged: “At some point Surrey Police has to cut its cloth. You can’t keep asking the public for more and more money when it’s a regressive tax.” He asked the PCC to “give the public a break” from the ever-increasing tax bills. 

But finance officers warned that the ability to make further cuts “become more difficult every year” despite efforts to standardise IT systems, renegotiate contracts and improve procurement. They warned if Surrey Police do not increase the precept in a particular year then it has “missed that chance” in every following year to raise funds for the Force.

Although the Government has promised to fund some police pay rises above 2.8 per cent, Surrey is still waiting for clarity on how much of this money it will actually receive. The long-awaited Police Reform Bill could also see some functions stripped away to a national body or Surrey forced into merger talks — changes with potentially “major financial implications.”

Surrey remains one of the lowest government-funded forces in the country, leaving residents to shoulder more of the burden through local taxation.

Councils across the UK have added a further £7.8bn to their collective borrowing in the last year, leaving local authorities with debts of £122.2bn – the equivalent of £1,791 for every resident. The figures, released by the Ministry of Housing, Communities and Local Government show that council debt rose seven per cent in a single year from £114.5bn in 2024.

For Epsom and Ewell Borough Council (EEBC), debt at the end of the 2024/25 financial year stood at £64.4m – or £785.80 per head of population. Surrey County Council’s position is much larger in absolute terms, with borrowing of £1.07bn, equating to £873.69 per resident. EEBC’s debt level is exactly the same as the previous year. “This is because the council has not taken on any additional borrowing, and no debt was paid between the two financial years”, said Cllr Neil Dallen (RA Town Ward), Chair of EEBC’s Strategy and Resources Committee.

Both figures sit below the UK-wide average of £1,791 per head but illustrate how deeply embedded borrowing now is in local government finance.

Why councils borrow

Local authorities are permitted to borrow to fund projects such as schools, leisure centres, theatres and housing. Many also borrowed heavily over the past decade to acquire commercial property – from office parks to shopping centres – intended to generate rental income to offset cuts to central government funding.

But short-term borrowing from central government has almost tripled in recent years, in some cases used to plug day-to-day budget gaps rather than pay for long-term investments. Jonathan Carr-West of the Local Government Information Unit warned the approach was “extremely worrying”, likening it to “payday loans for local governments”.

Surrey’s position

Tim Oliver, Leader of Surrey County Council, said that while the council had “a stable budget position”, it was not immune to national financial pressures. He added: “All our key services – including social care, children’s services, and highways maintenance – are facing higher demand, higher costs, and reduced funding. We must find ways to continue to support those residents who need us most, and to deliver the services that people rely on every day.

“As part of our budget setting process, the levels of balances and reserves have been determined to ensure that the level is justifiable and manageable in the context of local circumstances and risk.”

Surrey’s capital spending ambitions include new school places, highways upgrades, green initiatives, social care accommodation and library improvements, but the council has been forced to hold more expensive short-term debt while waiting for interest rates to fall.

National concerns

Warnings about the sustainability of council borrowing are not new. Six authorities – Croydon, Slough, Thurrock, Birmingham, Woking and Nottingham – have effectively declared bankruptcy in recent years, in some cases due to failed investment schemes. Thurrock alone faces a £469m funding black hole from collapsed solar farm projects.

The Institute for Fiscal Studies has calculated that local authority “core spending power” remains 18% lower per resident than in 2010 despite some increases since the pandemic.

In June, Labour leader Sir Keir Starmer pledged an overhaul of the council grant system to simplify the funding formula and shift resources towards the most deprived areas. While welcomed by urban councils, rural authorities have raised concerns that redistribution could “overcompensate” and leave them exposed.

Cost of servicing debt

Separate analysis by the Times found that councils across Great Britain now spend the equivalent of a fifth of council tax revenues on servicing their debts. Annual interest costs are estimated at over £4bn – more than the combined national spend on emergency housing and libraries, culture and tourism.

The Local Government Association’s finance spokesperson, Cllr Pete Marland, said council finances “remain in a fragile position”, adding: “A sustainable, long-term financial model for local government must lead to all councils having adequate resources to meet growing cost and demand pressures.”

The local picture

Epsom and Ewell’s £64.4m debt may appear modest compared with Surrey County Council’s £1.07bn, but both authorities – like councils nationwide – must balance their budgets each year while contending with higher borrowing costs, reduced grant funding and rising demand for services.

With 30 more councils seeking exceptional financial support from government this year, including permission to use loans or asset sales to cover day-to-day spending, the pressure on local finances is set to remain intense.

The table below lists all of Surrey’s districts highest debt first for 2024/2025:

Guildford and Waverley Borough Council’s chief executive’s new salary will be £169,950 after a three per cent pay rise was agreed – despite the likelihood the two councils will soon be dissolved as part of local government reorganisation.

[The annual salary for a UK Prime Minister is £172,153, which includes £80,807 for the role of Prime Minister and an additional £91,346 for being an MP.]

Pedro Wrobel was appointed as the new joint chief executive in 2024, having previously been Westminster City Council’s executive director for innovation and change. He replaced former boss Tom Horwood, who said he was standing down from the then £150,000 job due to health concerns.

Other options that had been on the table at the Thursday, July 31 Guildford and Waverley Joint Senior Staff Committee included a 3.2 per cent bump, welcomed by the Union for Local Authorities CEO’s and Senior Managers, as well as a bumper one-off £25,500 lump sum that would have ramped the position’s salary up to £185,000. The council said this would have brought the role in line with similar shared CEO roles such as Broadland District and South Norfolk, as well as Boston Borough, East Lindsey District, and South Holland District.

In the end, the committee took all of two minutes to agree on a three per cent rise — the equivalent of an extra £4,950 a year. The union UNISON has already agreed a three per cent award for Waverley Borough Council employees. No agreement for Guildford Borough Council employees has been agreed.

A spokesperson for Waverley Borough Council said: “This decision aligns with the pay award agreed with UNISON for Waverley Borough Council employees, and the councils’ Joint Leadership Team. Maintaining a competitive remuneration package is essential to attract and retain high-calibre leadership. The benchmarking data shows that many councils with similar or even smaller populations and fewer employees offer higher salaries. A modest increase helps to ensure the council remains competitive in a challenging recruitment market.”

Mr Wrobel’s new salary is among the highest received by council bosses in the Southeast and Surrey – although on a per head of population basis it is the lowest among similar councils with a joint role. This, the council argues, reflects the significant scale and complexity of the Guildford and Waverley job – with a combined population of more than 270,000 and responsibility for a workforce of more than 1,100 employees and 100 borough councillors.

The councils rejected the 3.2 per cent offer as it would have created inconsistency with the rest of the leadership team. While the one-off uplift to £185,000 would have represented a 12 per cent increase, significantly above local and national pay trends, it was therefore considered inappropriate and difficult to justify financially at this time.

Epsom and Ewell Times adds:

Chief Executive Salaries – Surrey Councils

Figures are the most recently published base salaries or salary bands. Some councils report ranges, others exact figures, and a few include allowances or car benefits.

New CEO Pedro Wrobel (image GBC) and UK PM Starmer

Pro-Palestinian campaigners have urged a Surrey council to cut financial ties with Barclays Bank, accusing the firm, of funding what they called Israel’s “genocide of the Palestinian people”. But no formal decision on divestment was made at the meeting.

Simon Higgins, on behalf of West Surrey Palestine Solidarity Campaign, delivered a statement to Guildford Borough Council on July 30, calling for the authority to take an “ethical and moral stand” by divesting from Barclays.

He claimed research shows Barclays holds billions in shares and loans to arms companies whose weapons are being used in Israel in attacks on Palestinians.

“If Guildford Borough Council keeps investing in Barclays, it’s helping fund this genocide,” Mr Higgins said. “This cannot continue.” He added the bank helps the Israeli government raise money by acting as a dealer for its bonds.

Mr Higgins said: “Data obtained by independent research organisation, Profundo has revealed that

• Barclays holds over £2 billion in shares and provides £6.1 billion in loans and underwriting to nine companies whose weapons are being used by Israel in its genocidal attacks on the Palestinian people.
• Investment and financial services to these arms companies facilitates the provision of weapons for Israel’s attacks.
• Barclays acts as a ‘primary dealer’ for Israel’s government bonds, enabling it to raise money to fund its genocidal policies. By investing in Barclays, GBC is aiding this genocide.”
• He said over 700 local people have signed a petition calling for the council to divest, adding both the Mayor of Guildford and the council’s finance lead have acknowledged the seriousness of the situation.

Responding to the claims, Cllr Richard Lucas, lead for finance and property said he shared Mr Higgins’ horror at what is happening in Gaza, but did not believe the case against Barclays was clear-cut.

Cllr Lucas said: “[ Guildford council ] share Mr Higgins’ revulsion of what is going on but we don’t think he has made a clear case against Barclays and furthermore we are not in a position to make a detailed judgment on this.

“We’re already moving away from Barclays as part of our wider investment strategy,” he added. “We understand the concerns, but we have to make decisions responsibly.”

He said the research quoted by Higgins contradicts Barclays’ own statements, which say the bank doesn’t use its own money to invest in arms companies and that it pulled out of Israeli government bond deals last summer.

Cllr Lucas also explained how the council’s investment policy works. “We follow national guidelines that tell us to prioritise security and liquidity, and to act as responsible investors,” he said.

The council currently has two investments with Barclays – £3 million in a 95-day notice account (which is already being withdrawn), and £1.5 million in bonds that mature in 2027. Lucas said pulling out of the latter early would result in a significant financial loss.

“We’re already moving away from Barclays as part of our wider investment strategy,” he added. “We understand the concerns, but we have to make decisions responsibly.”

Speaking afterwards, Mr Higgins said: “At the meeting I was shut down and denied a right of reply. This is unfair, undemocratic and unconstitutional.”

Image credit: rawpixel.com CC 1 License details

How £11m for rail, transport, school, health and recreation upgrades will be spent in Mole Valley has been laid out. The district council has approved spending plans for community infrastructure money collected from developers since 2016 – with almost half expected to go on cycling and walking schemes. Community Infrastructure Levy (CIL) is paid as part of the planning process to help offset the impact of the growing number of homes in the borough. Councillor Bradley Nelson, cabinet member for planning, said: “The local plan was adopted in 2024 so the time has come to focus on the £11m of strategic CIL which could rise to £34m given the local plan growth.” He said the projects should be ones “the council thinks are necessary and achievable to help support development growth.”

“The programme commits investment for vital infrastructure such as health provision in Ashtead, Bookham, and a health hub in Leatherhead. Early years provision in Ashtead and Dorking would be targeted for funding as well as train station improvements in Dorking which we hope will lead to wider improvements and help the district as a whole, as well as investment in the district parks.” The council has been working with Surrey County Council over transport, education, early years provision and flood defence, Surrey Heartlands Integrated Care Partnership, Great Western Railway, Network Rail, the Football Foundation, and its own parks and open spaces team to get an up-to-date picture of the suitable projects.

It has earmarked two transport projects to upgrade rail infrastructure on the North Downs Line at the stations in Dorking. These projects, the Tuesday July 22 cabinet papers read, will complement planned improvements on the line, such as battery-electric trains, and increase the number of people using this sustainable transport mode. Deepdene Station will be upgraded as a priority and a lift installed, acting as a major contribution towards “realising the potential of the district’s east-west travel connections, supporting growth and promoting sustainable development”. School capacity issues requiring funding in Hookwood could also be addressed, as well as the expansion of the SEND school on Woodland in Leatherhead.

Surrey County Council’s early years team has identified two potential projects, one in Ashtead and one in Dorking, while football pitches at Ashcombe Secondary School in Dorking and the other at the Brockham Big Field could be upgraded to modern standards. There would also be financial support for the resurfacing of the sand-dressed pitch at Therfield Secondary School in Leatherhead to allow the installation of a new 3G football pitch “without losing a vital resource for hockey.”

Cllr Keira Vyvyan-Robinson (Liberal Democrats: Leatherhead North) said: “We all know just how much residents are concerned about the amount of development that comes and their biggest concern is where does the infrastructure come. It often seems that it’s a bit of a chicken and egg because the CIL comes from development, and without development you don’t get CIL – and therefore you don’t get infrastructure. For a long time we’ve been in the position where we’ve been telling residents we have to build these homes and we have to build these sites – and there hasn’t been anything to show – so it is really welcome to say ‘this is how we meet the infrastructure demands’. She added: “We can provide the funding, but we are dependent on the railway companies, the GP surgeries, the schools, to make those bids and to ask for the funding. But the development will pay for it and hopefully they will all come together at the same time.”

Estimated CIL Contributions by Infrastructure Category

• Transport – Active Travel – £11,555,000
• Transport – Passenger Transport – £3,450,000
• Well Being – Health – Primary Care – £2,350,000
• Well Being – Open Space and Public Realm – £3,859,000
• Well Being – Sports Facilities – £771,000
• Education – SEND – £870,000
• Education – Early Years – £300,000
• Flood Defence – Nature Flood Management – £95,000

A Surrey County Council could be pushed to the brink of financial crisis if government reforms, aimed at evening out local authority funding, go ahead, its leader has warned. Cllr Tim Oliver (Conservative) said Surrey County Council could be heading towards a “cliff edge” under proposals which could dramatically reduce Surrey’s income. The central government is looking at scrapping the current council tax funding model in favour of a national 100 per cent ‘equaliser’ system where each local authority gets the same amount of funding. The Conservative leader’s warning came during a cabinet meeting on July 22, where he suggested the government’s ‘Fair Funding Review’ would hit Surrey harder than most councils due to its higher council tax base.

The central government has launched a review into how local councils are funded across the country, called the fair funding review. Reports suggest the government could go ahead with a 100 per cent “equaliser” for local government income, meaning every council essentially gets the same level of council tax income. “There will be at some point a cliff edge for this council,” the Conservative leader warned colleagues. “There is an expectation we will look to our residents to fill that gap. That gap won’t be filled – can’t be filled – even if we were to increase council tax by 5 per cent.” Currently, Surrey has a high council tax base meaning it has more band H houses, paying at least £3,692.70 in 2025, compared to other parts of the country.

The funding reforms under consideration could flatten out this advantage by reallocating resources away from wealthier counties like Surrey and towards lower-income authorities. Cllr Oliver warned the resulting drop in funding would not be completely offset by any increase in local council tax, leaving the council with a growing deficit and fewer levers to pull. “It’s absolutely essential that we drive efficiencies wherever possible,” he said. “Otherwise this council like many others I’m afraid will be in section 114 territory where we simply cannot have a balanced budget.” A Section 114 notice effectively means the council’s expenditure outweighs its income. As councils cannot go ‘bankrupt’ it stops the authority from spending any more money except from its legal responsibilities.

Despite the stark and solemn warnings, Cllr Oliver said the council was committed to avoiding that outcome and praised the authority’s efforts over the past six years to manage finances. He said: “Whether that’s lobbying the government or managing our budget locally […] to make sure we can continue to provide services to our residents but that is going to be challenging.”

But government ministers would argue the current local government system is “broken” and outdated, with council tax bands still based on 1991 property values. A statement from the secretaries of state on the Fair Funding Review said: “Our reforms will take into account the different needs and costs faced by communities across the country, including adjusting for the costs of remoteness faced by rural communities, and the ability of individual local authorities to raise Council Tax, while also resetting business rates income. It will update the crucial formulae used to calculate funding allocations, which are a decade out of date.”

Related reports:

Two unitaries will save money says Surrey leader

Surrey leaders review spending review

Surrey’s BIG debt question in local government reorganisation

Tim Oliver Surrey County Council leader – Surrey Live

Council tax arrears in Epsom and Ewell have reached £1.8 million, according to new figures from the Department for Levelling Up, Housing and Communities. The amount contributes to a record £6.6 billion of outstanding council tax across England, highlighting a deepening crisis in household finances.

The local figure reflects the ongoing pressures of the cost-of-living crisis, with many households struggling to pay essential bills. National Debtline, the free debt advice service run by the Money Advice Trust, reports that one in four people contacting them for help has council tax debt, with an average shortfall of £1,958 per person.

Research from the Money Advice Trust found that, as of March 2025, around 2.2 million people in England — equivalent to 5% of households — were behind on their council tax.

Council tax is a critical source of revenue for local authorities, funding services including social care, waste collection, and local infrastructure. But with budgets increasingly stretched, councils have relied more on council tax income, pushing bills higher and making payment harder for some residents.

Currently, rules mean that if a resident misses a single council tax payment, they can become liable for the full annual amount, which can quickly escalate to court action and bailiff involvement.

In response, the Government has proposed extending the timeframe before enforcement action begins, giving people more opportunity to catch up on missed payments. The Ministry of Justice has also announced a consultation on strengthening oversight of the bailiff industry, with proposals to give the Enforcement Conduct Board statutory powers to regulate bailiff practices.

Steve Vaid, Chief Executive of the Money Advice Trust, said:

“Unless changes are made at a policy level, arrears are likely to keep climbing. At National Debtline, we’re calling for improved collection practices, as well as greater investment in council tax support schemes, to prevent people falling behind in the first place.”

National Debtline encourages any resident worried about their council tax payments to seek free, independent advice before their debts spiral. Their helpline is available on 0808 808 4000 or via www.nationaldebtline.org.

Government Spending Review Falls Short for Surrey Councils and Epsom Hospital, Say Local Leaders

The UK Government’s latest Spending Review has drawn a mixed reaction from Surrey leaders, with concerns mounting over local council finances and delays to urgently needed hospital upgrades in the Epsom area.

Surrey County Council: Welcome Commitments, Ongoing Pressures

Responding to the Chancellor’s announcements, Surrey County Council Leader Cllr Tim Oliver acknowledged “important announcements,” including increases in core funding for local government, funding pledges for children’s services, and a renewed commitment to reforming Special Educational Needs and Disabilities (SEND) provision.

However, Cllr Oliver warned that the headline increase in “core spending power” rests on councils raising council tax by the full 5%—a move that may place strain on households during a cost-of-living crisis. Even with that assumption, county and unitary authorities across England are projected to face a £2.2 billion funding gap next year.

“Whilst our finances have been transformed to a point where we have delivered stable, balanced budgets year after year,” Oliver said, “we are not exempt from the financial challenges faced by councils.”

Oliver stressed the urgency of the upcoming Fair Funding Review, calling for a “fair and proportionate” outcome to ensure long-term stability for local authorities like Surrey.

Locally, the council has invested an additional £15 million into a three-year SEND recovery plan, begun in September 2023, which is reportedly beginning to bear fruit. But Oliver added that the government’s announcements stop short of tackling deeper issues. “Provision and support for children with SEND is a systemic issue… and the current system does not work for families, schools or councils,” he said.

SEND Deficits and Budget Certainty

Perhaps the sharpest criticism came over the government’s silence on the spiralling SEND deficits many councils face. Without intervention, these deficits—currently kept off balance sheet—will be formally accounted for from next April.

“Many local authorities, including Surrey, are facing a continuing increase in demand in comparison with levels of funding received,” Oliver said. “Councils will soon start planning their budgets for next year and cannot afford to have this can kicked down the road any longer.”

Future of Local Government in Surrey

The Spending Review did include a continued commitment to Local Government Reorganisation (LGR)—a development welcomed by Surrey County Council. Surrey recently submitted a proposal to transition to two unitary authorities, a move that could reshape local government in the county.

“We have worked hard to form that proposal,” said Oliver, “to deliver the best possible outcome for Surrey residents.”

Local MPs Condemn “Missed Opportunity” for Epsom & St Helier Hospitals

Meanwhile, the Liberal Democrat MPs for Epsom & Ewell, Carshalton & Wallington, and Sutton & Cheam expressed deep disappointment over the absence of additional investment in the long-delayed redevelopment of Epsom & St Helier Hospitals.

Despite a known £150 million repair backlog, the government has only committed £12 million to date, with the timeline for a new specialist emergency hospital now postponed until 2033 under the Labour government. Local MPs Bobby Dean, Helen Maguire, and Luke Taylor said this continued delay threatens the “very future of our hospitals.”

“The Government has missed a massive opportunity to deliver real change for Epsom & St Helier Hospitals,” they said in a joint statement. “£12 million is simply a drop in the ocean.”

The trio highlighted years of cross-party pressure in Westminster, including Prime Minister’s Questions and debates, aimed at securing vital upgrades for the “crumbling” estate. “After 14 years of broken promises, the Government has an opportunity to do better,” they added.

Rising Council Tax on the Horizon

Further national analysis has added to concerns around the financial implications of the Spending Review for local authorities. Paul Johnson, Director of the Institute for Fiscal Studies (IFS), noted that while English local government fared “perhaps a little bit better than it might have expected,” there is a “sting in the tail”: council tax bills are now set to rise at their fastest rate of any parliament since 2001–2005.

Chancellor Rachel Reeves confirmed that councils’ core spending power will rise by 2.6% annually from next year. However, this figure is based on the assumption that councils will impose the full 5% annual increase in council tax—an option many local authorities may feel compelled to take. “We won’t be going above that,” Reeves said. “That is the council tax policy that we inherited from the previous Government, and that we will be continuing.”

Liberal Democrat deputy leader Daisy Cooper described the overall package as a “missed opportunity,” warning that council budgets—especially in areas such as social care—remain “very, very stretched.” She added: “The Government is now looking to local councils to put up council tax to plug the gap in these particular areas… We cannot wait. This can’t be kicked down the road any longer. The Government has got to act now.”

For residents of Epsom and Ewell, the message is clear: whether through delays to vital infrastructure or increasing local taxation, the burden of national decisions may be felt most acutely at the community level.