Guildford Council manages to balance its budget, but rising debt and future savings are major concerns.
The council approved the 2025/26 budget and government funding stayed about the same. Councillors praised finance staff for the turnaround, as Guildford faced near-bankruptcy in 2023 due to rising debt.
The council needs £2 million in savings yearly to cover borrowing costs. The budget gap could reach £5.9 million by 2029, with service costs potentially rising significantly too.
Cllr Lucas said debt repayment is a big challenge. They must find £2 million each year to maintain current levels and cover rising costs.
Debt repayment plans exclude a large housing project, Weyside Urban Village, which plans to build 1,500 homes. Its borrowing costs begin after 2029 and are not in the current budget plan.
The council started this big project but still needs to figure out the costs. They will decide on financing it in March.
Cllr Oven fears this project could cause problems and supports it but questions affordability.
Cllr Lucas said they made savings and raised fees. They hope to collaborate with Waverley council, a partnership that already saved some money.
National insurance increased costs for the council, and wage increases and inflation also strain the budget. They will raise council tax by the maximum amount, and service charges will increase as well.
The council has about £17.7 million in reserve funds, which is above the recommended minimum.
Cllr Oven called it an “austerity budget,” as spending drops significantly. They cannot spend money they do not have.
Opponents criticized the budget’s lack of ambition, expressing a desire for new, exciting projects. Cllr Bigmore is sad about limiting ambition.
Guildford will review all its spending, including required duties and goals. They will likely stop doing some things, and finding savings will involve some pain.
