Surrey Heath Borough Council is taking urgent steps to avoid issuing a Section 114 (bankruptcy) notice and to stabilise its finances as it prepares to be dissolved into the new West Surrey Unitary Authority. During this week’s Audit, Standards and Risk Committee meeting (early February 2026), councillors said they must fix the budget now to ensure local services can continue until the borough is dissolved on 1 April 2027.
The council is managing legacy borrowing of around £170 million, much of which stems from 2016 town-centre property acquisitions such as The Square shopping centre. To balance the books, officials are proposing asset sales and service reprioritisation — including possible reductions to community grants and other non‑essential services — as part of a Transformation Programme to stabilise the council’s position.
Those financial moves are taking place against the planned reorganisation of Surrey local government: the new West Surrey Unitary Authority, which will cover Guildford, Runnymede, Spelthorne, Surrey Heath, Waverley and Woking, is due to take over on 1 April 2027. Council leaders say they want to avoid passing unmanaged debt on to the incoming authority.
Despite the drive for savings, the council intends to complete key capital projects — including regeneration work on the London Road Block — and other major schemes. According to BBC reporting, several projects are expected to be finished during 2026 ahead of the unitary transition.
A report presented to the Audit, Standards and Risk Committee (the council’s Audit Progress and Sector Update) set out why officers regard these steps as necessary to keep the council operating effectively during its final year before the transition. Councillors have said they will continue to work for local residents until responsibilities transfer to the new authority.
