Guildford council leader faces no confidence vote

Guildford Borough Council recently narrowly avoided having to issue a section 114 notice

Guildford Borough Council’s leader is to face a no confidence vote, with Conservative members calling for her “immediate resignation”.

The motion claimed Liberal Democrat Julia McShane was “deeply associated” with the “debacles” in the authority’s housing department.

The council narrowly avoided issuing a section 114 notice recently, effectively declaring itself bankrupt, although a review of its finances uncovered more issues.

The no confidence motion will be debated on Tuesday.

The problems include a £10m accounting error, where money owed to central government was effectively put in the wrong column on a spreadsheet, and a separate investigation in the housing department looking into possible fraud.

Officers have previously said “significant work” was needed to improve the financial governance within the council.

The motion said the council was experiencing “significant financial issues” and there was a “realistic prospect” a section 114 notice may still be issued next year.

It claimed the situation seemed to have primarily come about through the erosion of reserves since 2019.

The Liberal Democrats took control of the council in May, taking 25 of its 48 seats.

Julia McShane faces a no confidence vote as council leader on 10 October

Previously it was led by a coalition of the Liberal Democrats and the Residents for Guildford and Villages Party (R4GV).

Councillors will also debate a request to the Department for Levelling Up, Housing and Communities to send in a commissioner to independently assess the housing department at the council.

A spokesperson for the council said: “All motions tabled for the meeting on 10 October will be discussed in full then.

“We’re unable to provide answers to or comment on specific questions relating to the ongoing investigation.

“We are committed to transparency and will release further information when it is appropriate and permissible to do so.”