Council Leader comments on formal response to Provisional Financial Settlement 

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Cll Shaun Macdonald

As part of the Council strategy to campaign on behalf of residents, Shaun Macdonald, Leader, Surrey Heath Borough Council, wrote an open letter to Micheal Gove MP, Secretary of State for Levelling Up, Housing, and Communities, during the formal consultation on the Council's 2024/25 financial settlement.  

Within this open letter, Cllr Macdonald recommended revisiting key areas before finalisation, including:   

  • Longer term commitment beyond 1 year, to allow better planning and decision making, and reduce uncertainty.   
  • Full coverage of the Council’s inflationary related costs, such as fuel, energy, materials, goods, and services.   
  • Provision of adequate funding to cover temporary accommodation, due to increasing individuals and families presenting as homeless due to the cost-of-living challenges they are facing.   
  • Substitute the intended phase-out of the New Homes Bonus scheme with an initiative to encourage the development of affordable homes.   
  • Acknowledgment of financial challenges faced by Borough and County Councils in any final settlement.    

Cllr Macdonald expressed concern about the provisional settlement saying “In these challenging times for residents that the Council supports, it is extremely difficult to understand why our provisional financial settlement for 2024/25 leaves us 4th lowest per household nationwide”  

He also highlighted, "It remains deeply concerning that the council is only allowed to retain 5% of business rates collected in the Surrey Heath for reinvestment in the borough. This also impacts our efforts to support business growth and jobs.  “I urge the government to reconsider its financial settlement for Surrey Heath."