Council heading to a financial 'cliff's edge'

Surrey has a high council tax base, meaning it has more homes in band H compared to other parts of the country

A council in Surrey could be pushed to the brink of financial crisis if government reforms go ahead, aimed at evening out local authority funding, its leader has warned.

Tim Oliver said Surrey County Council could be heading towards a "cliff edge" under proposals which could dramatically reduce its income.

The government is looking at scrapping the current council tax funding model in favour of a national 100% "equaliser" system where each local authority gets the same amount of funding.

Conservative council leader Mr Oliver's warning came during a cabinet meeting, where he suggested the government's Fair Funding Review would hit Surrey harder than most councils due to its higher council tax base.

Mr Oliver said: "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%."

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, according to Local Democracy Reporting Service.

Mr Oliver said: "It's absolutely essential that we drive efficiencies wherever possible."

A government statement 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"It will update the crucial formulae used to calculate funding allocations, which are a decade out of date."

Follow BBC Surrey on Facebook, on X. Send your story ideas to [e-mail] or WhatsApp us on 08081 002250.