Spelthorne Facing Dramatic Overspend

Published on: 11 Sep, 2025
Updated on: 11 Sep, 2025

Spelthorne Borough Council offices in Knowle Green, Staines.

By Emily Dalton

local democracy reporter

Spelthorne Borough Council is staring down a budget black hole in its budget after the rental income it had banked on from its investment properties failed to materialise.

Its debt is an unresolved issue in the proposed local Government Reorganisation with councillors and residents in other boroughs and districts unhappy about taking on legacy debt from Spelthorne, Woking and Surrey County Council.

A new report shows Spelthorne Borough Council is only likely to make £1.9 million from its commercial property portfolio this year – less than half of the £4m originally planned. Empty offices, stalled lease renewals and rent-free sweeteners to tenants have all cut into the council’s income.

The bulk of the issue comes from a £2.1 million shortfall in property income, with empty offices, stalled lease renewals and rent-free sweeteners to tenants cutting into the council’s income.

Leader of Spelthorne Borough Council, Joanne Sexton

The gap has left what council leader Joanne Sexton (Ind) described as a “very worrying financial position” only a quarter into the 2025/26 financial year.

Cllr Karen Howkins (Con, Laleham and Shepperton Green) asked bluntly: “How can we set a balanced budget in February and be £1.9 million out, just three months later?”

On top of that the council has already pencilled in a £6.1 million raid on its “sinking fund” (money set aside to cover risks on commercial property) to help balance the books. Some councillors said they still don’t really understand how that pot is being used or why.

Meanwhile, reserves were described as a one-off “last resort” by finance officers who stressed the council had to find a solution without leaning on reserves.

At the same time, taxpayers are footing a £450k tax bill for government-appointed commissioners, parachuted in after inspectors raised serious concerns about the council’s finances and governance earlier this year. The costs could rise further still if consultants are brought in.

The figures left councillors fuming at a meeting on September 8. Cllr Rebecca Geach (Lab, Ashford North and Stanwell South) said she didn’t feel comfortable waving through such a shortfall with limited information.

Cllr Sexton warned: “Unless we have all the facts in front of us, it’s very difficult indeed for us to be able to make informed decisions based on limited information.”

Finance officers said the overspend was a projection (and not yet a reality) and promised mitigations will plug the gap before March 2026.

These included freezing non-essential spending, chasing rents, assessing vacancies and reviewing costly projects like the £1.65 million Stockley Park office refurbishment. But the officer stressed the reserves should only be used as a last resort.

There were also fresh fears about what could be cut, with councillors pleading for assurance that services for vulnerable residents would not be on the chopping block.

The report admits that, unless savings are found quickly, reserves may have to be raided to balance the books. It states the current financial projection for 2025/26 at the first quarter is not sustainable and poses a risk to the budget planning process for next year.