Council closes multi-million budget gap

A Surrey council has closed a multi-million pound budget gap as it gets ready to be absorbed into a new unitary authority next year.

Epsom & Ewell Borough Council was forecasting a £5m shortfall over three years, but a combination of financial strategies has reduced the projected deficit to £579k across the same period, the Local Democrary Reporting Service said.

Councillors were told in January that the authority had set a balanced budget for 2026/27, ensuring the new council will inherit a more stable financial position.

The council says the financial environment remains challenging but the authority now has a clear plan to manage those risks.

Although Epsom & Ewell will no longer be a standalone council, it is still required to pass on a clear and accurate financial position to the successor authority.

By closing much of the budget gap now, the council reduces the risk of the new authority inheriting an immediate financial crisis.

Despite the improved position, councillors have backed plans to increase council tax by 2.98% next year, the maximum allowed without a local referendum.

Officers said the increase, worth £6.93 per year for a Band D property, had always been built into long-term financial planning and was necessary to maintain stability.

The council also warns that financial risks have not disappeared.

Rising homelessness costs, inflation in contracts and uncertainty over income streams such as business rates continue to pose financial challenges, the council says.

However, councillors were told the authority had identified actions and savings to keep the budget balanced for the coming year.

Final approval of the budget will be made by the full council on Tuesday.

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