Surrey council tax likely to rise by nearly 5%

Tim Oliver says the government's financial settlement means council tax in Surrey will have to rise by the maximum allowed

The leader of Surrey County Council said the authority will have to put up council tax by nearly 5% next year – the maximum allowed – because of the funding settlement announced by the government on Monday.

Conservative leader Tim Oliver said there was enormous pressure on council finances due to inflation and increased demand for services.

Councillors in Surrey had been planning to put up council tax by 4% but Mr Oliver said they would be faced with a £13.5m budget gap as a result of the settlement announced this week.

The government said the funding “gives certainty to local government and shows support in challenging times”.

Speaking at a cabinet meeting on Tuesday, Mr Oliver said he plans to write to Surrey MPs as he called for further negotiation.

Surrey was the only county council in the South East not to put up council tax by the full amount last year.

A spokesman for the Department for Levelling Up, Housing and Communities said on Monday: "Local authorities have seen an increase in core spending power of up to £5.1bn, or 9.4%, in cash terms on 2022-23.

"Councils are ultimately responsible for the management of their own finances, but we stand ready to talk to any council that is concerned about its financial position."