By Chris Caulfield
local democracy reporter
The “critical” state of Spelthorne Borough Council’s finances means it must cut at least £8.6 million from its budget by 2028.
To put that into perspective, bankrupt Woking Borough Council made £8.4 million in cuts last year in an effort to right its own financial mess.
It managed it by cutting 20 per cent of its workforce, scrapping all grant funding to community groups, and shutting services such as public toilets.
Spelthorne Borough Council’s finances are “unsustainable”, with a £1 billion pound debt and diminishing income. It means the authority must also cut millions in services to avoid the catastrophe of bankruptcy.
The damning critique of the north Surrey council’s sitation was published on Monday, March 17, on the back of a best value review into the way the borough has been managed.
Spelthorne Borough Council, like Woking, borrowed heavily to invest in property and used the income to pay for services above and beyond what it could have otherwise afforded.
And, again like Woking, it failed to put enough money aside to cover the cost of debt interest repayments.
“In essence, the council’s revenue budget is under far greater pressure than recognised by the council. Inherent risks are beginning to materialise, and could accelerate rapidly”, the Spelthorne Borough Council: Best Value Inspection report reads.
It comes as the government confirmed it was proposing an intervention package, including appointing commissioners to oversee changes in how Spelthorne Borough Council is run because the borough lacks experience needed to make the cuts and had “no credible strategy in place to achieve savings of this level.”
Spelthorne has to shed £8.6 million from 2028/29 budget. Last year Woking Borough Council – the only local authority with a higher per capita debt than Spelthorne – achieved £8.4 million in savings.
Other councils, such as Guildford and Waverley, that could combine with Spelthorne and Woking in the new unitary councils to be formed under the impending local council reorganisation, are very concerned how the debts will be passed on.
See also: How Will Local Government Reorganisation Pass On the £Billions of Debts?
How Woking achieved its savings.
This is how residents and community groups in Woking were affected. It is being used to paint a picture of what cuts at that scale look and feel like
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