Council debt drops to £715m but 'more work needed'

A Surrey council has wiped more than £300 million from its debt but still faces "a range of very significant challenges", a report says.

Government-appointed commissioners intervened in running Spelthorne Borough Council in May over fears debt had hit £1.1 billion in March 2025.

A report says total debt has now dropped to £715 million, but claims approaches to risk management "remain poor".

Council leader Joanne Sexton says the report "rightly recognises" the steps already taken but "more improvement is required".

In the report, published on Tuesday, government commissioners say many staff and councillors "have responded positively and proactively", but cited a "lack of acceptance" of some of the financial steps needed.

The report said debts were reduced by taking advantage of a "significant discount on total debt" in exchange for shortening the terms of its loans.

Commissioners also criticised conduct in council meetings as "particularly poor", with some members' behaviour described as "disrespectful to the chair, to other members, and to the officers".

"The work of improvement remains largely ahead and to be carried out alongside the local government reorganisation process", it added.

Under local government plans, Spelthorne Borough Council will be dissolved in favour of two unitary authorities - East and West Surrey councils.

Sexton says the restructuring of council debt "represents an important milestone and demonstrates our commitment to taking difficult, but necessary, decisions in the best interests of our residents".

She says: "We are well aware that this is the early stage of a longer journey. The priorities set out for the coming six months are clear and we will focus on these as priority."

Local Government Minister Alison McGovern said in a written statement that "significant challenges remain", adding: "Delivering these improvements will be essential to ensuring stability and readiness for the changes ahead."

Commissioners have been reappointed until Spelthorne Borough Council is eventually dissolved in favour of the unitary authorities.

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