Your Council Tax Explained How is your council funded?

Council Tax plays a vital role in funding most of the services we provide for residents, alongside central government grants and our retained share of locally collected business rates. In 2026/27, Surrey Heath will retain £1.5 million, equivalent to just 2.8% of business rates collected locally.

Like many councils across the country, Surrey Heath faces ongoing financial pressures. The council’s current financial position reflects long-term debt and associated interest from previous asset transactions.

In response, we have taken decisive action to strengthen our finances and protect essential services. Our transformation programme has identified nearly £3 million in savings, which represents 19% of the direct cost of our services.

These savings have been achieved through improved efficiency, tighter financial controls, and maximising income from core services and assets. These actions delayed the need for additional government support, particularly following funding formula changes that consider deprivation and affluence. The council is still projected to face an annual deficit of around £8 million.