Good news on Tandridge District Council’s finances
At a time when many Councils are struggling to stay solvent and a number have declared bankruptcy, I wanted to reassure you that Tandridge District Council is not in that position and is doing ok. Having received a number of emails from residents who have read the news headlines about other Councils, some of them in Surrey, this seems a good time to set out TDC’s improved financial position.
On 12 September, the Council received a letter from the Government’s Department for Levelling Up, Housing and Communities (DLUHC) stating: “The department recognises and commends the Council’s efforts to grip and manage its budget pressures, and the successful steps taken to deliver the transformation and savings programme in 2022/23 and in 2023/24.”
We have been in discussions with DLUHC because, in May 2021, when we took over as the administration, we found that the Council was itself threatened with bankruptcy and a £920,000 annual hole in the budget was discovered due to a pension costs error.
The Council’s reserves had been run down to a low level and so, in August 2022, when the Council sold a property it owned in Nutfield, we asked DLUHC for approval to use the money to bolster our reserves.
In its letter, DLUHC refused that request basically because we are doing too well, stating: “This decision reflects the department’s assessment of your overall financial position, including your current levels of reserves, and the steps taken and underway to transform the council and meet the budget pressures faced.”
Although disappointing that our approach to using our own resources to increase financial resilience has not been supported, it is good news that the Council’s successful efforts to turn around the finances have been recognised.
The Council is aiming to make savings of £1.7m in the current financial year (2023/24), a major challenge when you consider the revenue budget for the year is £11.9m.
To protect services to residents and to avoid using our modest reserves, a programme has been established to develop and implement a series of changes enabling a significant reduction in the Council’s own operating costs – the Future Tandridge Programme. This is aimed at ensuring that expenditure no longer outstrips income. We have also brought in stricter accounting and reporting rules to improve the Council’s financial management.
Figures for the first quarter of the year (April to June 2023) show savings delivery on track with just over £1m of the savings target already achieved or confident of being achieved soon.
We are also on track to balance the budget with no need to call on the reserves. However, we are aware of continuing risks around inflation, temporary accommodation costs, and planning appeals that need to be factored in and managed. Future Government funding for Councils is uncertain, and so we are taking steps now to ensure that our financial position remains as strong as possible.
If you have any comments or questions, please just get in touch at Cllr.Catherine.Sayer@tandridge.gov.uk.
Councillor Catherine Sayer
Leader of the Council