East Surrey Council Launch Still Rated Red, Five Months Out

The programme to replace Surrey’s councils with two new ones next April is still rated red, five months before the switch. East Surrey Council, which takes over from Reigate and Banstead Borough Council and Surrey County Council in this borough on 1 April 2027, is one of the two.

The latest progress report goes to the shadow authority’s scrutiny committee at Reigate Town Hall on Wednesday 4 November, then to its executive on 9 November. It says “current overall delivery confidence remains red”.

It also adds a new risk at the top of the register: that the new council’s finance chief and its legal chief will not be confirmed by 31 December, as the law setting up the councils requires.

Why it is red

The programme moved from amber to red on 30 September, the October report said. The trigger was an Ofsted and Care Quality Commission inspection of special educational needs services across Surrey, which ran from 21 September to 9 October. It pulled senior staff away from the reorganisation work.

At the executive’s meeting on 13 October, the programme director said red “did not mean that delivery was considered unachievable”, according to the minutes. It meant more oversight and intervention were needed.

The new report says the effect of the inspection now looks “recoverable” and the short-term impact “manageable”. The longer-term picture depends on the inspection report, due in late November.

Where the work stands

According to the progress update:

• 68 of 201 critical milestones have been completed
• the children’s services strand is rated red
• eight other strands and workstreams are amber, including finance and property, IT and data, and people and governance
• no strand’s rating changed since the last report

Some of the amber ratings carry practical risks for residents:

• Elections: the new electoral management system may not be ready for the 2027 annual canvass, the yearly check of who is registered to vote.
• Council tax support: decisions on a single scheme for East Surrey are still needed. The draft scheme is out to consultation until 3 December.
• IT: shortages of specialist staff mean an extra £2 million has been agreed for outside help.

The staffing risks

Four new risks were added to the register this month, all about senior recruitment. The risk update scores each out of 25.

The highest, at 20, is that permanent finance (Section 151) and legal (monitoring) officers will not be confirmed by 31 December. That would breach the Surrey (Structural Changes) Order 2026. The report says outside recruitment is being planned as a fallback.

Even where candidates are appointed in time, some “may not be in post by 31 December 2026 due to contractual notice periods”, it adds.

Three other risks also score 20:

• that systems will not be ready on day one
• that staff cannot do their normal jobs and the reorganisation at the same time
• that the shadow executives cannot handle the volume of decisions needed

The cost

The fund for setting up both new councils now has £35.66 million committed. Another £3.1 million was approved since the October meeting, just over £2 million of it for IT. Just under £2 million is left uncommitted.

By the end of September, £6.95 million had been spent this financial year. The forecast includes £2.2 million of severance costs in March 2027.

One small line shows the pressure. The shadow authority’s own £900,000 government grant went £18,000 over on councillors’ laptops, because the price had risen to about £1,100 each by the time they were ordered.

The bigger money problem

The set-up cost is separate from the new council’s first budget. At the 13 October meeting, the Leader, Cllr Steve Wotton, said the gap in the 2027/28 budget was about £30 million, down from as much as £41 million earlier. The minutes record him saying council tax rises and the use of reserves “were likely to be required in the early years”.

What it means for you

Nothing changes in the services you use before 1 April 2027. Bins, council tax and planning carry on through Reigate and Banstead and Surrey until then. The red rating is about whether everything behind the scenes is ready on the day.

Council tax for 2027/28 will be set by the shadow authority before April. Its Leader has already said rises are likely.

You can watch the scrutiny committee online at 2pm on Wednesday 4 November, or attend at Reigate Town Hall. The executive meets on Monday 9 November at 10am. We will report what both meetings decide.

For more on the new council, see who runs what from April 2027 and the choice of Woodhatch Place as its headquarters.