County must make £180m in savings

By dfarbrother

If savings are not made by Surrey County Council, council tax might have to go up 10 per cent over the next four years.

This is the stark warning from council Deputy Leader David Hodge in advance of next Tuesday's budget cabinet meeting.

Speaking to The Mirror and setting out a four year plan to get back on track, Councillor Hodge said: "We are facing a huge challenge.

"We are faced with having to make savings of £180 million over the next four years. We're not prepared to put council taxes up to 10 per cent, so we have to cut costs.

"We are having a widespread public value review over the next three years to see where money can be saved.

"We plan to set a council tax rate of two-and-a-half percent, if council approves our recommendations at the meeting on February 9."

This will mean band D council tax payers can expect to pay £1,116.36 a year, a rise of £27 from 2008-2009.

But Mr Hodge warned that in order to keep the rise so low, some services would be cut, and some, such as busses, would be assessed for cost-effectiveness.

He said: "We must cut down. We pay more for our bus services than any other council. "

Highways is another area that will be looked at. Councillor Hodge said: "Highways is an area where we can do better.We are looking at a new contract and I believe we can deal with the same amount of roads for the same amount of money.

"The large works have gone well, but the little things, like potholes, we are looking to improve."

And cost savings are even being made among staff at county hall, with council staff facing a pay freeze, following the outcome of union negotiations.

But while some savings have to be made, councillor Hodge stressed essential service, such as schooling, would be protected. He said: "We need £156 million just to build new primary schools because the birth rate is on the increase. We're going to have to borrow that."

Likening the tough financial situation facing the council to a football match, he added: "It's like being in the Carling Cup semi-final having had a dreadful first half, but we have the team to come out in the second half to win the game."