The Surrey County Council cabinet met to discuss the 2026/27 draft budget, schools and early years funding, changes to adult social care charging policies, and the climate change delivery plan. The cabinet approved the draft budget for 2026/27, which includes a proposed council tax increase of 2.99%, alongside a 2% precept for social care, and also approved a number of property disposals. The cabinet also endorsed the coordinated admissions scheme for September 2027, and recommended the scheme to the County Council for approval.

Financial Matters

2026/27 Draft Budget

The cabinet approved the draft budget for 2026/27, but noted a £21.3 million budget gap. 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 noted that the government has confirmed a three-year settlement, which will set the scene for the new unitary authorities' budget setting process.

Councillor Oliver raised concerns about the fair funding review, which he said could result in a loss of income of around £50 million a year for the council. He also noted that by 2029, about 98% of the council's income will come from council tax increases. The draft budget assumes a 2.99% increase in council tax, with an additional precept of 2% for social care.

Councillor David Lewis, Cabinet Member for Finance and Resources, highlighted the importance of the capital programme, which delivers the council's strategic priorities. He noted that the cost of delivering these projects has increased over the last few years.

The cabinet agreed to note the draft budget, the budget gap, the proposed capital programme, and the approach to resident engagement.

Surrey Schools and Early Years Funding

The cabinet approved the Dedicated Schools Grant (DSG) funding arrangements for 2026/27. Councillor Jonathan Hulley, Cabinet Member for Children, Families and Lifelong Learning, stated that this funding is vital to ensure that schools and early years providers receive fair, transparent, and sustainable funding. The recommendations in the report include continuing the 1% transfer from the schools block to the high needs block under the safety valve agreement².

Councillor Clare Curran, Deputy Cabinet Member for Children, Families and Lifelong Learning, drew attention to the significant increase in the early years entitlement for free childcare for working families. She noted that the vast majority of this funding is passed on to nursery provision.

The cabinet agreed to delegate authority to the Director of Education and Lifelong Learning to approve amendments to the funding rates in the schools funding formula and early years funding formula, following receipt of the DSG settlement and Department for Education (DfE) pupil data in December 2025.

Adult Social Care Charging Policy

The cabinet approved a revised charging policy for adult social care community care services, with changes coming into effect in February 2026. 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.

The key changes include:

• Adjusting the capital threshold from £24,500 to £23,250, aligning with the national threshold.
• Introducing a tariff income of £1 a week for every £250 of capital between £14,250 and £23,250.

Councillor Mooney emphasised that these changes are designed so that contributions reflect what people can reasonably afford and apply mainly to people with higher levels of capital. She also highlighted the support available to residents, including benefit checks and financial advice.

Property Disposals

The cabinet approved the disposal of several properties:

• 33 Rookery Road, Staines: The cabinet approved the sale of 33 Rookery Road, Staines, subject to conditions and price variation mechanisms outlined in the Part 2 report.
• Fairways Day Centre, Staines: The cabinet approved the freehold disposal of Fairways Day Centre, Staines, to the bidder outlined in the Part 2 report. Councillor Turner-Stewart and Councillor Mooney expressed their support for the sale.
• Beechcroft Nursery, Epsom: The cabinet approved the freehold disposal of Beechcroft Nursery, Epsom. Councillor Beckett, the divisional member, supported the sale. Councillor Oliver noted that the council had gone with Councillor Beckett's preference, which might not have been the highest commercial price.

Climate Change Delivery Plan

Councillor Marisa Heath, Cabinet Member for Environment, presented the climate change delivery plan progress report. She reported that council emissions have fallen by 47% compared to 2019, putting the council on track with its 2030 net zero targets. Key achievements include the LED street lighting programme and retrofitting buildings.

However, Councillor Heath noted that progress has been slower than planned on solar installations and fleet decarbonisation. She highlighted the lack of consistent government funding as a major risk to meeting the targets.

Councillor Heath stated that the transition plan will focus on benefits for residents and set out the groundwork for the new unitary authorities. A 10-year strategy will also be developed to provide a roadmap for the future.

Councillor Helyn Clack, Deputy Cabinet Member for Children, Families and Lifelong Learning, asked about the source of hydrogen for the hydrogen buses in her division. Councillor Oliver noted that the core of this work has to be the added benefits, such as improved air quality for residents.

Coordinated Admissions Scheme

The cabinet endorsed the coordinated admissions scheme for September 2027, and recommended the scheme to the County Council for approval. Councillor Hulley stated that the scheme ensures fairness, transparency, and efficiency in admissions. He noted that the scheme is essentially unchanged from 2026, with only updated dates and minor clarifications.

Devolution and Local Government Reorganisation

Councillor Oliver provided an update on the devolution and local government reorganisation process. He noted that the Secretary of State has decided that the 12 councils should be consolidated and then split up into two unitary councils, East and West Surrey. Elections to these new councils will take place in May 2026.

Councillor Oliver also mentioned the Woking debt and the government's commitment to providing funding to pay down that debt. He stated that the government has confirmed the first tranche of funding of £500 million.

Month Six Financial Position

Councillor Lewis presented the month six financial report, which reflects a deterioration from the previous reported position. He noted the importance of focusing on all expenditure and ensuring that services live within their revenue budgets. Councillor Lewis also mentioned the Hawley town centre improvement programme, which is being funded largely by section 106 payments³.