Delays to Report on Housing Revenue Account Scandal Criticised by Scrutiny Committee

Published on: 19 Nov, 2025
Updated on: 20 Nov, 2025

By Emily Dalton, local democracy reporter,

and Martin Giles

Guildford councillors won’t get their hands on a long-awaited report into historic council housing repairs until next year after months of frustration over being left in the dark.

The report will look at whether work ordered on council homes, from fire doors to kitchens, was actually done, and whether almost £19 million of public money from the Housing Revenue Account was properly spent. Councillors fear it could reveal major waste or mismanagement and a police investigation into suspected fraud continues.

The scandal was first revealed over two years ago when two officers, who have subsequently resigned, were suspended, and temporary officers under contract dismissed. None has admitted any wrongdoing.

Two senior directors were also effectively suspended and later resigned, although it was made clear no criminal involvement was suspected.

Cllr Philip Brooker

Commenting on the further delay to the report, Cllr Philip Brooker (Con, Worplesdon), chairing last night’s (November 18) Overview & Scrutiny Committee, said: “This is outrageous. If we cannot access this report, we will not be forgiven by residents.”

The report has been nearly a year in the making and councillors were alarmed when it was announced that instead of being presented to last night’s committee meeting it was set to go straight to the Executive Committee before they could review it. Members complained this would have meant policy decisions being made without proper scrutiny.

Cllr Julia McShane

The optics of the suggested process did not look good. The portfolio holder of housing, Julia McShane, is also the leader of the Guildford council. The suggested timetable would mean the council leader and the Executive would consider the report and the extent of the mistakes that had been made and decide on actions and recommend policy changes before any other elected member would have the chance to look.

But a back down was soon agreed and committee members were assured they would now see the full report at the committee, on January 20, 2026, before the GBC Executive makes any decisions.

Cllr Brooker said he has already seen a confidential draft and produced a 27-point critique but was concerned the issues may have not been addressed.

Cllr George Potter

Cllr George Potter (Lib Dem, Burpham) was also pointed in his criticism. He said that those managing the reporting process had “shifted the goal posts” and reminded the meeting that the committee had requested to see the methodology that would be used so they could assess its suitability.

He continued: “What has now happened is that the repeat request for that methodology have just been ignored, and what we’re getting is an entirely different report, which we will be allowed to see in January…, but it is perfectly possible that the committee [is] not satisfied with the robustness or the methodology of this investigation and the recommendation of this committee is to do it all over again.”

Then Cllr Potter, who was dismissed from the Executive earlier this year, pointedly asked: “What actions has she [Cllr McShane] been taking as portfolio holder to ensure the committee receives the document and report on the methodology, not the outcome, but just the methodological approach that was originally asked for back in March.

“And if it was appropriate for something to be shared with the chair of the committee… are any good reasons why it couldn’t have been shared confidentially, in private with all committee members or with all councillors…?”

Specific answers to his questions appeared lacking and asked after the meeting if he had been satisfied with the responses offered, Cllr Potter told The Dragon: “No I’m not satisfied, as I don’t think [my questions] were answered. I’m also not satisfied with the way the Chair failed to press for the questions to be answered, and I now doubt very much that they will ever be answered.”

Unlike the previous Solace report, which examined “who knew what and when” in the housing department, this new investigation dives into the actual repair work carried out to GBC’s estate of 5,000 council houses, and what it cost the taxpayer. Essentially, it could reveal the true scale of the the misspending and consequent damage to council finances.

Councillors say they need to be confident that public funds were properly spent and that residents are getting value for money.

The sums involved are significant. In February 2022, the council agreed to invest £24.5 million to bring 5,200 council homes up to standard. Prior to that, a three-year deal with Seville Developments Ltd, worth £2.4 million, was agreed in 2021. Within three years, spending on the contract had ballooned to £18.9 million, a £13.5 million overspend.

Cllr Howard Smith

Cllr Howard Smith (Lab, Westborough) said: “It is deeply disappointing for everyone; I think it would be wise to share the report with the regulator.”

For now, councillors and residents will have to wait until January to see the full picture. Cllr Brooker said the committee will scrutinise the findings and make recommendations, ensuring elected members, not just the Executive, have their say over how millions of pounds of public money were spent.

A webcast of the meeting can be found here: https://guildford.public-i.tv/core/portal/webcast_interactive/1040608

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