Local Government Finance: Surrey

The Department works closely with local authorities and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis. Any council that has concerns about its ability to set or maintain a balanced budget should approach the Department in the first instance, where we will treat all discussions in confidence and with respect.

The Government accepts that Woking Borough Council holds significant unsupported debt that cannot be managed locally in its entirety. We are committed to providing an initial tranche of financial support for debt repayment for Woking in 2026-27, ahead of the implementation of re-organisation in Surrey. Government-appointed Commissioners are in place in both Woking and Spelthorne, and have been engaged in the development of proposals for unitarisation.

The 2025 Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £3.4 billion of new grant funding which will be delivered through the Local Government Finance Settlement within financial years 2026-27 to 2028-29.

We will publish the provisional Local Government Finance Settlement later this year, which will inform local authorities of their provisional multi-year allocations.