The Strategic Investment Board met on Thursday 29 January 2026 and approved the transfer of assets from Surrey Property Group (SPG) to Surrey County Council, leading to the wind-up of SPG. This decision was made to protect the council's revenue budget and address concerns about SPG's solvency.

Surrey Property Group Option Appraisal

The board approved the transfer of assets to Surrey County Council and the subsequent winding up of Surrey Property Group (SPG). This decision was made to safeguard the ongoing revenue budget of Surrey County Council and the new unitary councils in the medium term. It also mitigates the risk of SPG becoming insolvent due to rising interest rates on loans from the council, which could prevent external auditors from signing off the company's accounts on a going concern basis and force its liquidation. The move is also forecast to increase the council's revenue budget income in the short term, as corporation tax will not be payable on surpluses generated by the assets when held by the council.

The report presented to the board detailed an options appraisal for SPG, following issues with cash flow and a delay in interest receipts in September. This prompted discussions between the council, as shareholder, and the SPG board to ensure the approved business plan would continue beyond vesting day. The SPG board was tasked with developing options to ensure cash flow, solvency for the medium term, and continued interest receipts for Surrey County Council. A key concern highlighted was the refinancing of SPG's loans and compliance with the Subsidy Control Act 2022¹. The external auditors had also raised concerns about the refinancing of loans and its impact.

The decision to transfer assets and wind up SPG was made after considering various options and the projected financial position of SPG. This outcome was deemed the most beneficial for the council's financial stability. The decisions made in this part of the meeting can be called in by the Resources and Performance Select Committee.

Minutes of the Previous Meeting

The minutes of the previous meeting held on 13 November 2025 were agreed as a correct record.

Questions and Petitions

No questions or petitions were received for this meeting.

Declarations of Interest

No declarations of interest were made by attendees.