The council Executive will meet on 11 February to agree the Medium Term Financial Strategy (MTFS), Revenue Budget, and council tax level for 2025-26 that they will recommend to Full Council.
The council is committed to continuing to deliver important essential services to residents. However the financial challenges faced by the council mean that cost reduction is essential, and will be a key focus for the upcoming year.
As with many similar councils nationwide, our costs have increased due to rising inflation, high interest rates, reductions in funding from partners and an increase in demand for our services.
The council is required to set a balanced budget each year. To achieve this, over the four-year period of the MTFS, the revenue budget includes planned transformation savings of up to £2.143 million, while up to £21.67 million is expected to be drawn down from reserves to bridge the gap between forecasted income and spending.
Surrey Heath Borough Council collects Council Tax from just over 40,000 households within Surrey Heath on behalf of local authorities in our area.
Of the total collected, 74% goes to Surrey County Council, 14% to the Police, and 1% to Parish Councils. Just 11% stays with Surrey Heath Borough Council helping to fund a huge range of services and support our local communities.
The Executive is expected to recommend to Full Council that the Surrey Heath Borough Council element of the annual council tax precept be increased by the referendum limit of 2.99% across all Council Tax Bands. This is equivalent to around 14p a week on an average Band D property in the borough.
Leader of Surrey Heath Borough Council, Cllr Shaun Macdonald said: “As has been covered extensively, as a council we are facing significant financial challenges due to the combination of high inflation and interest rates, decreased central government funding and higher demand for services.
“Close budget monitoring is key, and strong fiscal controls in place across the council will ensure that taxpayer’s money is used effectively.
“This Medium Term Financial Strategy outlines how we will continue to evolve the council’s operations, prioritising cost reduction, income generation, and optimising its property assets to work towards long-term financial sustainability.
“This is all against the backdrop of the government’s plans for devolution and local government reorganisation. We are proactively engaging with all partners to ensure the interests of Surrey Heath residents are prioritised and protected throughout the process.
“This included a strong campaign for the upcoming county elections to go ahead as planned in May, allowing people to exercise their democratic right to choose their elected representatives. Unfortunately that was not successful.
“While there may be uncertainty about the future structure of councils in Surrey, and the timescale for these changes, what is not in doubt is our commitment to continue to work hard to ensure your council tax is spent effectively.
“We are passionate about delivering for you and a fairer society, and we will continue to support our residents in every way we can.”
Read more about the Medium Term Financial Strategy item at the Executive meeting of 11 February 2025