Spelthorne respond to Best Value Inspection report

In February 2023, the Council received a letter from the Department for Levelling Up, Housing and Communities outlining concerns about Spelthorne's debt.

In May 2024, Spelthorne Borough Council received a Best Value Inspection letter from the previous government to inform the authority that an independent inspection would be undertaken to review the Council to seek assurance that it is complying with its Best Value Duty. This followed concerns raised by the Department for Levelling Up, Housing and Communities around Spelthorne's levels of debt and borrowing.

In past years, central government actively encouraged local authorities to find innovative ways of raising revenue, and between 2016 and 2018 the previous Spelthorne Borough Council Administration responded by borrowing directly from the Public Works Loan Board (PWLB) to purchase a commercial property portfolio and generate income[1] to support and protect local services[2].

We have now received the Best Value Inspection report and recommendations which can be read in full. During the review, councillors and officers worked with the inspection team in an open and transparent way, sharing many documents and providing dedicated briefings and presentations to the team. 

Some of the recommendations overlap with the findings of a recent external audit report, in response to which the Council is formulating a strong and cohesive action plan[3] with progress having already been made in many areas. A breakdown of these recommendations and the audit action plan are available here.

In total, the report includes 13 detailed recommendations summarised below:

1. Commissioner-led intervention
2. Comprehensive commercial strategy
3. Review and strengthen asset management
4. Review of the Council's Minimum Revenue Provision
5. Revised Medium-Term Financial strategy
6. Debt reduction strategy
7. Transformation strategy development
8. Review and strengthen finance function
9. Improvement and recovery plan
10. Revised Corporate Plan
11. Audit Committee structure
12. Culture and relationship building
13. Housing delivery

Today Spelthorne has received the letter from the Minister which outlines the next steps for this authority. Whilst this authority takes pride in delivering services for its residents and businesses (read 2024 Resident survey results), it nevertheless recognises that there are now immediate and key actions that need to take place prior to local government reorganisation becoming effective in this Borough.

Leader of Spelthorne Borough Council, Cllr Joanne Sexton, said, "This Group Administration has faced a challenging time and has been actively pursuing the right solution to manage the historical debt that it has inherited. We have met with the Local Government Minister from central government, and we have agreed to work in partnership to take decisive action in the remaining time we have before local government reorganisation is implemented.

In just over one year, we will see new unitary authorities emerge, initially in a shadow form, before Spelthorne is expected to lose its sovereignty in 2027. Across the whole of Surrey there are significant financial pressures, with a £5.6 billion debt, which is why these proactive steps are necessary for Spelthorne to position itself to take an active approach to reducing our debt. Our pledge remains that we will always put residents at the heart of everything we do"

Deputy Leader of Spelthorne Borough Council, Cllr Chris Bateson, said, "We were aware of the scale of the massive debt we inherited from the previous administration in 2023 and consequently welcomed the Best Value Inspection. We are grateful to the inspection team for their diligence and we accept their recommendations. We will work in partnership with the Ministry of Housing, Communities and Local Government to address the issues identified."

Read our 'year in review' at Spelthorne - 2024/25 year in review

Notes to editor

• [1]read a summary of our current financial position and achievements Spelthorne - 2024/25 year in review
• [2] read about our services delivered in the 2024 annual report Annual report
• [3] read the Audit press release Spelthorne responds to external audit and the Council's action plan Audit 2023 - 24 Key Recommendations Appendix A final.pdf
• read the Knowle Green Estates annual report Annual report
• read our latest Corporate Plan progress report Corporate Plan progress report - CPRC Feb 2025 1.pdf
• cost to the Council finances for the Best Value report currently stands at £200,000