Spelthorne Council takes major step toward financial recovery

Spelthorne Borough Council is taking firm action to secure a stable and sustainable financial future. The plan, backed by the Corporate Policy and Resources Committee, will go to Full Council for final approval on Monday 17 November.

Earlier this year, the Council received a Best Value Direction and audit recommendations requiring it to prove that its finances are affordable and sustainable. In response, the Council developed an Improvement and Recovery Plan focused on reducing debt, managing assets responsibly, and following stronger financial practices including setting aside funds each year to repay borrowing.

The Council’s current financial challenges stem from decisions made by previous administrations which led to high levels of borrowing and financial risk. The new strategy aims to correct those issues and bring the Council’s finances back in line with national accounting standards.

If approved, the plan will cut Council debt by around £360 million (actual figure will vary depending on the rates applying at the time the re-financing happens), reducing it to about £700 million. This lowers the average debt per resident from roughly £10,000 to £7,000, meaning the Council’s total debt will now be closer to the value of its assets.

A carefully managed programme of asset sales will follow to help pay down further debt. The Council has confirmed there will be no “fire sale”; each sale will be planned to protect value and deliver the best return for local taxpayers.

These changes mark a turning point in Spelthorne’s financial recovery, ensuring the Council can manage its finances locally and independently without government intervention. Over time, the goal is to reduce total debt to close to £100 million, similar to other district councils.

Council Leader Cllr Joanne Sexton said: “This administration is taking decisive action to fix the mistakes of the past Conservative administrations to make sure Spelthorne’s finances are sustainable, transparent, and compliant with national standards. These are tough but necessary steps to protect local services and secure the borough’s long-term future.

“As discussions continue around the future of local government in Surrey, we are determined to put Spelthorne in the strongest possible financial position.”