The Surrey County Council cabinet met to discuss the draft budget for 2026/27, which forecasts a £21.3 million gap, and to review the climate change delivery plan progress report, which shows a 47% reduction in council emissions since 2019. The cabinet also approved a revised charging policy for adult social care, and agreed to recommend the coordinated admissions scheme for 2027 to the full council. Additionally, the cabinet discussed and approved recommendations related to the reorganisation of local government in Surrey.

2026/27 Draft Budget

The cabinet considered the draft budget for 2026/27, noting a budget gap of £21.3 million. Councillor Tim Oliver OBE, Leader of the Council, explained that this is the last budget that Surrey County Council will set before the creation of two new unitary authorities¹ in East and West Surrey. He also noted that the government has confirmed a three-year settlement, which will set the scene for the new unitaries' budget setting process. Councillor Oliver highlighted the challenges the council faces, including rising costs, rising demand, and decreasing revenue from the government. He expressed concern that by 2029, about 98% of the council's income will come from council tax increases. He also mentioned the fair funding review, which he said could result in a loss of income of around £50 million a year for the council.

Councillor David Lewis, Cabinet Member for Finance and Resources, added that the financial climate remains incredibly challenging, and that people are finding it more challenging than during the pandemic. He also noted that the cost of delivering capital projects has increased.

The cabinet approved four recommendations related to the budget, including noting the draft budget, the budget gap, the proposed capital programme, and the summary of resident engagement.

Climate Change Delivery Plan Progress Report

The cabinet reviewed the climate change delivery plan progress report, which showed that council emissions have fallen by 47% since 2019, putting the council on track to meet its 2030 net zero targets. Councillor Marisa Heath, Cabinet Member for Environment, said that this has been achieved mainly through the LED street lighting programme and retrofitting buildings. She also noted that county-wide emissions have fallen by 21%, which is slightly above the carbon budget to be aligned with the 2050 net zero targets set nationally.

Councillor Heath highlighted key achievements such as bus decarbonisation, tree planting (768,000 trees planted), growth in eco-schools participation, and expansion of a home energy advice service. She also noted that the lack of consistent government funding is a problem for business decarbonisation and active travel infrastructure.

The cabinet approved two recommendations to note the findings of the climate change report and the progress against reduction targets, and the proposed 10-year strategy.

Adult Social Care Charging Policy

The cabinet approved a revised charging policy for adult social care, which includes changing the upper capital threshold limit for community care services to £23,250 and introducing a charging tariff income at £1 per week for every £250 for people receiving community care services who have capital between £14,250 and £23,250. Councillor Sinead Mooney, Cabinet Member for Adult Social Care, explained that the changes are being considered because Surrey is now one of the few councils charging below national guidance for people receiving care in the community. She stressed that the changes are designed so that contributions reflect what people can reasonably afford and they apply mainly to people with higher levels of capital.

Councillor Denise Turner-Stewart, Deputy Leader and Cabinet Member for Customer and Communities, asked how residents would be supported through the changes. Councillor Mooney responded that every resident impacted by the decision will receive a personal letter explaining the changes, along with the offer of a new financial assessment.

The cabinet approved two recommendations to approve the revised charging policy and to agree that the changes will take effect from 2 February 2026.

Coordinated Admissions Scheme for 2027

The cabinet agreed to recommend Surrey's coordinated admissions scheme for 2027 to the full council. Councillor Jonathan Hulley, Cabinet Member for Children, Families and Lifelong Learning, explained that the scheme is essentially unchanged from 2026, with only updated dates and minor clarifications. He said that the scheme is critical to ensure fairness, transparency, and efficiency in admissions.

The cabinet approved the recommendation to endorse the coordinated admissions scheme for September 2027 and recommend the scheme to the County Council for approval.

Devolution and Local Government Reorganisation

The cabinet considered progress on work to date on devolution and local government reorganisation (DLGR). Councillor Tim Oliver referred to a letter from the Secretary of State outlining the decision to proceed with two unitary councils for Surrey. He noted that elections will take place in May 2026 to those two new unitary councils, which will then shadow the existing authorities until 31 March 2027.

Councillor Oliver said that the government has asked the council to set up two voluntary joint committees, one for the East and one for the West, to take forward discussions and recommendations to the two new unitary councils. He also mentioned the need to establish a combined strategic authority, comprising the leaders of the two new councils, and pressed the government for a date for the mayoral election.

The cabinet approved four recommendations related to the DLGR, including noting the Secretary of State's decision, approving the establishment of two voluntary joint committees, acknowledging the latest developments for devolution, and noting the progress on the development of Neighbourhood Area Committees (NACs).

Month 6 (September) Financial Report

The cabinet considered the month 6 financial report, which showed a deterioration from the reported position. Councillor David Lewis said that it is disappointing that the services are not living within the revenue budget, and that there is a need to focus all expenditure. He noted that there is an underspend against the rephased capital budget.

The cabinet approved five recommendations related to the financial report, including noting the council's forecast revenue budget and capital budget positions, agreeing to the re-set of the efficiencies for 2025/26, approving the revised budget for the Horley Town Centre Improvement Programme, approving the extension of Council Tax Relief for Care Leavers, and noting the balance sheet indicators.

Disposal of Council Assets

The cabinet approved the disposal of three properties:

• 33 Rookery Road, Staines: The cabinet formally declared the asset surplus to operational requirements and approved the sale of the property, delegating authority to the Deputy Chief Executive and Executive Director of Resources to finalise the transaction.
• Fairways Day Centre, Staines: The cabinet approved the freehold disposal and declared the asset surplus, with the sale to the bidder outlined in the Part 2 report. Councillor Oliver noted that Councillors Denise Turner-Stewart and Sinead Mooney were very supportive of the sale.
• Beechcroft Nursery, Epsom: The cabinet approved the freehold disposal of the house, old garden nursery buildings, and land, declaring the asset surplus. Councillor Oliver noted that he had engaged at length with Councillor Beckett, who was supportive of the sale to the successful bidder, even though it might not necessarily have been the highest commercial price.

Other Items

• Councillor Natalie Bramhall, Cabinet Member for Property, Waste and Infrastructure, was recognised as cabinet member of the month. She gave a presentation on the council's capital projects programme, highlighting library refurbishments, new salt storage facilities, special educational needs developments, alternative provision, mainstream education, children's residential homes, and adult's wellbeing projects.
• The cabinet noted one decision of the cabinet member, which was a disposal of a number of properties.
• The minutes of the previous meeting, held on 28 October 2025, were agreed.