The Communities, Environment and Highways Select Committee met to discuss the draft budget for 2026-27, the performance of the Surrey Fire and Rescue Service, and the impact of the Your Fund Surrey initiative. The committee requested a written briefing on the community budget reconfiguration, committed to including the updated community risk profile in future packs, and requested that any efficiency savings do not detrimentally impact the Greener Futures programme.

Draft Budget 2026-27

The committee scrutinised the draft budget for Surrey County Council for 2026-27, focusing on areas within the committee's remit, including highways, waste management, and community services. Councillor David Lewis, Cabinet Member for Finance and Resources, acknowledged the challenging financial climate for local government, with inflation at 3.5% and uncertainty around fair funding reforms and the local government reorganisation (LGR). Nikki O'Connor, Assistant Director for Finance for Corporate, highlighted that the fair funding reforms would result in flat funding year on year, predicated on a council tax increase to the maximum allowable amount of 4.99%. Rachel Wigley, Director of Finance and Deputy Section 151 Officer, outlined options to close the £21.3 million budget gap, including further efficiencies, use of reserves for one-off expenditure, and increasing council tax.

Key points raised during the discussion:

• Sale of properties: Councillor David Lewis clarified that the council has an ongoing programme of asset disposal, with capital receipts used to reduce debt levels, but cannot be used for revenue purposes. Nikki O'Connor confirmed that the council has approximately £120 million in usable, unallocated reserves.
• Quarterly performance reports: Performance data informs service planning, with an additional £5 million proposed for grass verge maintenance due to public concern.
• Capital programme: The capital programme assumes capital receipts from property sales, with a forecast of just over £20 million for 2026-27. Natalie Bramhall, Cabinet Member for Property, Waste and Infrastructure, confirmed that overage and clawback clauses are often included in property disposal contracts.
• Verge maintenance: Lucy Money explained that the £5 million for verge maintenance covers grass cutting, roadside verges, and highway trees. Ecologists have reviewed conservation verges to support local nature recovery[^2]. [^2]: Local nature recovery strategies (LNRS) are a new system of spatial strategies for nature, established by the Environment Act 2021. They will identify the most valuable areas for nature and agree priorities for nature's recovery.
• Revenue vs reserves: Lance Spencer raised the question of whether the additional £5 million for grass verge maintenance should be a revenue item or taken from reserves. Councillor David Lewis said that if the unitary authorities[^3] want to maintain the current level of service, it should be included in the revenue budget. [^3]: A unitary authority is a type of local authority that is responsible for all local government services within a single area.
• Efficiency proposals: Ian Drummond explained that the proposed efficiencies are considered reasonable and deliverable, but some are reliant on further decisions or dependencies. He said that the council has a good track record of delivering efficiencies. Rachel Wigley added that the council has £66 million worth of efficiencies built into the 25-26 budget and has achieved 89% already.
• Waste management: The council is receiving £9.3 million in EPR[^4] grant funding this year, which is being reallocated among new initiatives. The districts and boroughs are aware of the reduction in DMV recycling support payments, which will be offset by grants going directly to them. Jodie Johnson from the waste team, said that the non-recyclable waste contract was retendered in 2024, resulting in savings of approximately £3 million a year. [^4]: Extended Producer Responsibility (EPR) is a policy approach under which producers are given a significant responsibility – financial and/or organisational – for the treatment or disposal of post-consumer products.
• Bus services: Lucy Money said that the additional £1.7 million needed for bus services will be offset by planned efficiencies of £6.2 million across the place directorate.
• Climate change projects: The £0.5 million reduction in the climate change project budget is a reversal of one-off projects funded this financial year due to a better than expected government settlement.
• Parking: Lucy Money explained that the £0.7 million pressure on parking is due to an increase in penalty charge notices and the cost of operating the service. The council is lobbying the DFT[^5] to increase the charge limit on PCNs. [^5]: The Department for Transport (DfT) is the government department responsible for the English transport network and a number of transport matters in Scotland, Wales and Northern Ireland.
• Non-recyclable waste: Jodie Johnson said that the cost per tonne of non-recyclable waste is just over £111, saving approximately £17 per tonne from 2023. The council is working to increase the amount of material recycled and encourage reuse and recycling.
• Greener futures: The £0.58 million efficiency saving for place will not impact the Greener Futures activity or the Green Futures team.
• Capital budget: The capital budget includes continued investment in highways maintenance and assets and infrastructure. The A320 is being reprofiled due to changes on the ground with the contractor.
• Council vehicles: The council will assess each vehicle individually to determine whether its life should be extended or replaced with an electric, hybrid, or petrol/diesel vehicle.
• Safer communities: The efficiencies within the safer communities team will be achieved through joint funding with partners and not filling vacancies. The £2.5 million safer communities grant has been confirmed.
• Registration department: Andy Brown said that the registration service is confident in achieving the £0.29 million additional income through new commercial offers, increased capacity, and fee increases.
• Community services: Claire Edgar said that the community service reconfiguration efficiencies will have no significant impact on Your Fund Surrey.
• Local government reorganisation: The council has not built in any savings or efficiencies linked to the local government reorganisation in this portfolio.

The committee requested that any efficiency savings do not detrimentally impact the Greener Futures programme.

Your Fund Surrey

The committee received a report on Your Fund Surrey, a community grant programme, and its impact on residents' day-to-day experiences and sense of community. Claire Edgar, Executive Director for Adults, Wellbeing and Health Partnerships, highlighted the work delivered across the county over the past five years. Nikki Tag, Your Fund Surrey Manager, was also present to answer questions.

Key points raised during the discussion:

• Budget: The council has ensured that sufficient funding is reserved to meet all approved project commitments.
• Combining allowances: Councillors can combine their allowances from the small YFS fund to support the same projects, up to a total of £50,000.
• Resident feedback: The council captures resident feedback through community and partnership officers and will look to conduct surveys in certain areas as part of the evaluation model.
• Health inequalities: Your Fund Surrey has helped to tackle health inequalities by supporting projects in areas of deprivation, such as the Stanwell events and the Weybridge Men's Shed.
• Council priorities: Tackling health inequalities has been the council's biggest priority achieved through the programme, followed by empowering communities, enabling a greener future, and sustaining the economy.
• Monitoring: Officers monitor Your Fund Surrey projects and produce a social value evaluation. The council uses a social value engine to look at return on investment and prevention impact.
• Transition to unitaries: The council is working to ensure a smooth transition to the unitary authorities, including transferring funding agreements and data.
• Project examples: Examples of successful projects include the Normandy shop and cafe[^6] and brick planters in Hersham. [^6]: The Normandy Village Shop is a community owned village shop and cafe in Guildford, Surrey.

The committee emphasised the need to monitor how the money is spent and to consider the positive impact that Your Fund Surrey could have within the new unitary councils.

Surrey Fire and Rescue Service Performance

The committee reviewed the performance of the Surrey Fire and Rescue Service (SFRS), noting the progress made in addressing the cause of concern and 24 areas of improvement identified in the 2023 inspection by His Majesty's Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS). Dan Quin, Chief Fire Officer, presented the report, highlighting the service's commitment to continuous improvement and public safety.

Key points raised during the discussion:

• Real change on the ground: Primary dwelling fires have fallen from 1.5 per thousand homes in 2002 to 0.9 in 2024. Fire incidents dropped from 1,091 to 967 between 2023-24 and 2024-25. Dwelling fires dropped from 443 to 388. The service is benchmarked as the second lowest number of primary fires in the country.
• Safe and well visits: For every pound spent on safe and well visits, the return through social value is £2.67. 94.5% of safe and well visits are to the most vulnerable people.
• Fire safety audits: For every pound invested in fire safety audits, the return is £4.15.
• Response times: The service is meeting its response time commitments, with the first fire engine arriving at critical incidents within 7 minutes and 48 seconds.
• Performance management: Peter Guest explained that performance is monitored quarterly by the service senior leadership team and escalated to the corporate leadership team and cabinet as required.
• Fatal fires: The service undertakes a fatal fire review every time there is a fatal fire, using a bow tie analysis to identify areas for improvement.
• Wildfires: The relationship with the Ministry of Defence (MOD) is very good. The service has wildfire rural affairs officers who work with land managers to mitigate incidents.
• Inspection preparedness: The service is getting ready for the next inspection framework in 2025-27. Sally Wilson explained that the service has a community risk management plan and a community risk profile, which is reviewed annually.
• Risk management: The service has a risk management framework with five service working groups that monitor risks and escalate them to the service leadership team.
• Water availability: The service is well-versed in utilizing open water supplies and pressure-fed supplies. New fire engines hold 4,500 litres of water.
• Data centres: The service is mapping out the location of data centres and is aware of the risks associated with them.
• Workforce diversity: Improving workforce diversity is a challenge. The service is undertaking targeted attraction campaigns and creating bespoke development opportunities.

The committee requested a written briefing on the outcomes of the new HMICFRS inspection when they are available, and committed to including the updated community risk profile in future packs.