Surrey council approves 'steady and stable' budget despite maximum council tax increase

Residents in the average Band D property will pay £211.28 this year, representing a 2.99 percent increase from £205.15 in 2024/25.

The change in tax for this band makes up about “the price of a coffee” per week, said Councillor Bridget Kendrick, presenting the budget as Cabinet Member for Finance.

“When there are councils across the country that have closed swimming pools, community centres, theatres and proposing monthly bin collections,” Cllr Kendrick said.

“I am proud that what on the surface seem ‘steady and stable’, can be achievement itself.”

Various financial difficulties have been thrown at the council this year, (like many other local authorities) including inflation, employers’ contribution to National Insurance and wage rises.

NI contribution has burdened the council with £427k worth of costs to cover alone, with only £100k promised compensation received from the government.

The rest of the gap is being filled by money from reserves.

The Deputy Leader said all of Mole Valley District Council’s income from council tax increase will be offset by the reduction in government funding by the settlement, which represents a reduction of 10 per cent of central funding.

Mole Valley has approved to use over £300k from its reserves to plug a deficit to balance its budget this year.

The council’s bankruptcy warning officer said she was happy with the council’s finances, but warned that identifying and delivering the savings required is a significant risk to the on-going sustainability of the services that the council provides.

The council’s general fees and charges will increase three per cent, above inflation.

However, individual charges may be higher or lower, depending on costs or demand. Around £136k is hoped to be made in savings from this.

Part of the budget includes a new option to buy 1.5 hours pay and display parking, which the council says it hopes to generate an extra £9k.

Other Pay and Display charges and permit prices have increased in line with inflation, according to the report.

‘Unnecessary savings’?

The local authority is hoping to make over £1m worth of savings this year through different cuts and streamlining resources.

Members slammed this as “unnecessary savings”, and lambasted the council for giving the communications department £333k.

This marks a £60k boost from its previous budget of £273k budget in 2024/25.

Cllr Gerry Sevenoaks attacked the budget as “full of reckless spending, pet projects, mismanagement of council finances”.

Members accused the council of favouring Dorking Halls over other projects like parks, with a budget of a whopping £472k.

“The playgrounds in Mole Valley will continue to decline,” said Joanna Slater, criticising only £30k being given to maintain park and open spaces this year.

The total budget for parks and landscapes for 2025/26 is £531,000.

She said: “Equipment is broken, swings are so dangerous they are tied up to the side […] and sandpits are empty.”

Most of the savings is set to come from reducing the workforce by around 10 percent over three years, creating £466k in 2025/26.

Mole Valley says it will do this by restructuring and deleting vacant posts.

Other savings came from renegotiating a recycling contract, restructuring and changing software systems.

The report also said £45k will be saved as from the shared finance partnership with Spelthorne Borough Council.

However, members of the Liberal Democrat administration questioned where their opponents’ alternative budget was.

“It is always easy to spend money that isn’t there,” Cllr Chris Budleigh fired back at the opposition.

Others defended the money earmarked for communications.

Cllr Monica Weller argued, while devolution and local government reorganisation looming overhead, it is “crucial” to communicate with residents properly.