Council blocks bid to raid reserve fund for repairs

The results of a full review of reserves and council-owned assets already under way are expected in November

A bid to raid a Surrey council's multi-million pound property reserves to pay for repairs to crumbling public buildings has been thrown out by councillors.

According to the Local Democracy Reporting Service, Epsom and Ewell Borough councillors blocked a move to dip into a £7m rainy day fund to pay for repairs to community venues.

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

However, other councillors said dipping into the fund would be "reckless".

Councillor James Lawrence told the strategy and resources committee meeting that trimming the reserve could free up £1.5m, safely reducing reserves and using the money to fund the projects residents need.

He said: "We've come out of Covid uncertainty and we've got secure rental income."

But other councillors and officers warned 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 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 in the county so we're having to look at everything."

Councillor Neil Dallen said: "We're in the unusual position of not staring at bankruptcy like other councils — and that's because we've been prudent."

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

An officer said if reserves are found to be "over-prudent", some money could be released for other priorities.

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.