The Cabinet of Surrey County Council met on Tuesday, 26 May 2026, to discuss property disposals, the ongoing local government reorganisation, and the council's financial outturn for the 2025/26 financial year. Key decisions included the approval of the disposal of three council-owned properties and the noting of updates on the devolution and local government reorganisation programme, alongside the approval of the 2025/26 financial outturn report.

Property Disposals

The Cabinet considered the disposal of three council-owned properties:

• West Park & Palmers Farm, West Park Road, Lingfield, RH7 6HT: The Cabinet formally declared this 3.36-acre landholding, which includes former stables, a dairy, agricultural buildings, and a dilapidated bungalow, surplus to operational requirements. The decision was made to sell the entire landholding at auction, with authority delegated to officers to finalise the transaction and agree specific covenants. The sale is conditional upon the surrender of a headlease held by Halsey Garton Residential Ltd (HGR) over West Park Farmhouse.
• Land at Callow Hill, Virginia Water: An option agreement was approved for the disposal of a small strip of land associated with a former landfill site. This land is currently subject to monitoring for another 20 years and has no meaningful current use. The agreement allows for a potential future capital receipt. Authority was delegated to officers to finalise the transaction.
• Former Beechcroft Nursery, 127 Reigate Road, Ewell, KT17 3DE: Following an open marketing campaign, approval was given for the freehold sale of this former nursery site, which includes a vacant residential property, nursery buildings, and scrubland. The sale is subject to the price and conditions noted in the part 2 report, with authority delegated to officers to finalise the transaction.

Devolution and Local Government Reorganisation Update

The Cabinet received an update on Surrey's Devolution and Local Government Reorganisation (D&LGR) programme. Key points included:

• The final Implementation Plan had been considered by the Joint Committees and presented to the Shadow Authorities for approval.
• An Expression of Interest for a Foundation Strategic Authority in Surrey had been submitted to the government. This is a step towards potential mayoral devolution, with a decision from the government expected towards the end of 2026.
• The programme is progressing with a focus on a transition, not transformation approach, ensuring a safe and legal transfer of services to the new East and West Surrey unitary councils by 1 April 2027.
• The Implementation Fund, established to cover reorganisation costs, has had £28.2 million forecasted for expenditure, with £17.0 million approved in the latest round of funding.

2025/26 Financial Outturn Report

The Cabinet noted the council's financial performance for the 2025/26 financial year, which resulted in an underspend of £1.2 million against the revenue budget. Key highlights included:

• Revenue: An underspend of £1.2 million was achieved against the total revenue budget of £1.274 billion. This was attributed to effective mitigation of demand and price pressures, and an overachievement of £5.2 million in delivered efficiencies against the targeted £66.4 million. The Cabinet approved the contribution of the £1.2 million surplus to the Budget Equalisation Reserve. A further £0.3 million underspend in the Public Health Grant was approved for the creation of an earmarked reserve for Public Health.
• Capital: Total capital expenditure for the year was £290.7 million against a budget of £296.8 million. The Cabinet approved capital carry-forwards of £7.1 million into the 2026/27 capital programme.
• Dedicated Schools Grant (DSG): The High Needs Block (HNB) ended the year with an in-year deficit of £105.4 million, contributing to a cumulative deficit of £247.3 million. However, a High Needs Stability Grant from the government will cover 90% of the accrued deficit at 31 March 2026.
• Borrowing: The council's Capital Financing Requirement (CFR) stood at £1,767 million at 31 March 2026, with actual external borrowing at £1,205 million. All prudential indicators were adhered to, and borrowing remained below the authorised limit and operational boundary.
• Investments: The weighted average return on investments for the quarter ending 31 March 2026 was 3.83%, compared to the Bank of England base rate of 3.75%.
• Overdue Debt: Total overdue debt stood at £38.9 million at the end of March 2026, a decrease of £3.7 million from the previous quarter.

Cabinet Member of the Month

Councillor Mark Nuti, Cabinet Member for Health and Communities, presented his final report, reflecting on his tenure. He highlighted achievements in modernising libraries, the success of the Your Fund Surrey initiative, and the work of the communities and public health teams. He announced the launch of the final Your Fund Surrey Councillor Community Fund, providing £10,000 per member for community projects.

Other Matters

The Cabinet also noted delegated decisions taken since the last meeting, including the disposal of Surrey Property Group Limited's investment asset in Barnsley and the disposal of Clarendon House in Dorking.