County council forecasts £21m deficit

Council leader Tim Oliver says central government funding is "very unlikely" to close the budget gap

Surrey County Council is estimating it will have a £21.3m deficit in the draft budget for its final year of operating before being replaced by two unitary authorities.

Officials warned the council needed "to reduce costs and take difficult decisions" to close the forecasted shortfall for 2026-27.

Council leader Tim Oliver said a central government funding settlement, expected in December, was "very unlikely" to close the gap.

Cabinet members will vote on a final budget after its consultation closes on 4 January, before the full council votes on the plans in February.

It will be the local authority's final budget before it, and the county's 11 borough and district councils, are replaced by two unitary authorities.

The draft budget assumes a 2.99% rise in council tax, below the maximum 4.99% increase the council can enforce without holding a local referendum.

Options for the local authority include adding a 2% social care precept to bills or dipping into its reserve fund, according to the Local Democracy Reporting Service.

Cabinet member for finance and resources, David Lewis, told a meeting on Tuesday that residents, businesses and the council all faced "incredibly challenging" economic conditions.

He claimed people he spoke to locally were finding life "more difficult today than during the pandemic".

Officers reported the council capital spending - including projects for more special educational needs (SEND) school places and road upgrades - had been "reviewed and re-prioritised" to ensure it could afford borrowing costs.