The Liberal Democrats have criticised Conservative-run Surrey County Council after it emerged it is already predicted to overspend by £24million just two months int the new financial year.

According to the council, the shortfall has been caused by a failure to achieve significant savings, plus a significant overspend of £12.1m on children’s services.

Lib Dem leader Hazel Watson, said it had been caused by a combination of factors. Firstly, the Conservative administration failed to set a “realistic budget”, leading to “unrealistic and unachievable” savings targets.

She said: “Secondly, it is a consequence of the failure to negotiate adequate funding from their own Tory colleagues in central government, in order for the council to run essential services for residents.

“And thirdly, it demonstrates the council has failed to learn the lessons of the CIPFA financial resilience review from December 2016, which warned that the council’s financial plans are not robust and it is at risk of becoming financially unsustainable.

“The new government has also dropped plans to allow councils to retain their business rates next year, which the Tory administration anticipated as a potential lifeline for the county council when the budget was set in February.”

According to Mrs Watson, the extra £1billion given to the DUP for Northern Ireland was further proof Whitehall can provide extra funding when it wants to, and could help to alleviate Surrey’s cash crisis.

“Unless the government steps in with extra funding, Surrey County Council will find itself in a worsening financial position each year.

“I am calling for the Government to recognise that reality and provide the funding Surrey and other local authorities so desperately need.”