County Council Budget Warning from Finance Chief

Published on: 27 Jan, 2019
Updated on: 29 Jan, 2019

Leigh Whitehouse, executive finance director Surrey County Council

By Rebecca Curley

local democracy reporter

A “dose of healthy realism” and not a lot of “excessive optimism” is how Surrey County Council’s finance chief is approaching the next financial year.

Surrey is “performing weaker than comparative councils” the county’s executive director of finance warned.

And not wanting to be the “doom lady” as she called herself, the council’s chief executive Joanna Killian warned councillors they were “definitely not out of the woods”.

There was a level of caution from the council’s head officers as they were grilled by members of the corporate overview scrutiny committee on Friday, January 25.

Presenting the 2019/20 to 2023/24 Revenue and Capital Budget they were at pains to show change was in place, but that it could still take a few years to bring the council’s performance – particularly adult and children’s social care – up to a standard they wanted to meet.

The net budget of £885.9 million for 2019/20 will include a 2.99% council tax increase amounting to an extra 81p a week for a Band D property taking it to £1,453.50 if passed by council on February 5.

The proposed budget contains a savings plan of £82m – higher than the original target for this current financial year of £66m.

Around £24 million will be used from this financial year and next year’s budget to pay for the transformation programme the council has been consulting on regarding children’s centres, libraries and community recycling centres.

Leigh Whitehouse, executive director of finance, told the committee there was a “high level of uncertainty” around meeting savings and that it was going to be a “bumpy road”.

He said: “The council’s overall financial standing is weaker than comparative councils and has weakened over the past four years.

“I think the plan is a realistic one going forward for next year but we can’t ignore the significant bumps along the way.”

He said the newly-formed role of cabinet member for finance held by Cllr Mel Few was an important part of the “wider-web of accountability”.

Joanna Killian, SCC chief executive, said it was going to be a “challenging budget” but that there was a “significant” amount being spent on children’s services as they “were not supporting their children in a way they would like to”.

She said: “In time if we can change the way we look after our children then that will start to de-risk the budget.”

But she said there was some hope adding: “The fact we will not this year have to draw down on reserves is great.

“I need to keep saying it, without being the doom lady, it will be tough and we have got to have a tight hold.”

The budget will be discussed by full council on February 5 and then sent for final sign-off by cabinet March 26.