Guildford Borough Council’s leadership is celebrating the “extraordinary achievement” of getting its finances on an even keel three years after it was at serious risk of going bust.

The balanced budget and housing revenue accounts were passed with some pain including increases to parking charges, rate rises for tenants and a 2.99 per cent increase to council tax.

It will however leave Guildford Borough Council able to fund all services in its final year without having to rely on its reserves before it is merged with neighbouring authorities to become West Surrey.

The council’s chief financial officer told the Wednesday, February 11, full council meeting: “We bring this budget to council on the back of a national picture of demand pressures, inflation and increased interest rates – adding to the real-time cuts in funding.

“In recent years the situation in Guildford hasn’t been quite so robust but through direct intervention we have turned this position around.

“It is now, finally, in a financially stable and robust position with good levels of reserves.

Councillor Phil Bellamy, lead member for finance, said: “This budget is not about figures on a page, it is about people. It is about maintaining the services our residents rely on, from waste and recycling, to housing support to community facilities and environmental services.

“Every pound has been examined, every opportunity for efficiency has been explored. This has enabled us to deliver significant savings, secure additional income, realign budgets where needed, invest where it matters most all while protecting frontline services.

He added: “This reflects our commitment to fairness and social responsibility.

“This budget provides a 2.99 per cent increase in Guildford’s share of council tax. This is within the Government’s permitted limit and it strikes a careful balance. It recognises the pressure on household finances, while recognising our duty to fund vital local services.

“That’s never really an easy decision. It is responsible but it is appropriate and necessary.”

Council tax in Surrey is split across the different levels of local government.

Surrey County Council accounts for about 74 per cent of your bill and voted to increase its share by 74 per cent.

Surrey Police takes a further 14 per cent and voted to hike its share by 4.4 per cent.

Guildford Borough Council, which collects the tax on their behalf as well as funding its own services, accounts for roughly nine per cent with any parishes adding about three per cent of their own.

Overall, the current rate for Band D homes in the Guildford Town Area is £2,388.01 but this will rise to £2,476.83 at the lowest end stretching to £2653.70 in Seale and Sands.

The Conservative group called on the administration to introduce an hour’s free car parking into the town centres saying the added cost would be offset by the uplift in footfall and the sense of community it would bring.

This was shot down by Councillor Vanessa King, deputy leader, who said it  would cost £4m a year in revenue and asked them what services they would cut to make way.

She added the budget “was an extraordinary achievement. To think that we are presenting a two-year balanced budget just three years after we were faced with the possibility of having to issue a Section 114 (bankruptcy) notice is an amazing achievement and I am really quite surprised that there is anyone in this council who is not proud of that.”

Catherine Young, Residents for Guildford, disagreed with and criticised the way increased parking charges were introduced but said she understood the need to balance the budget.

She said: “As we review these proposals we must be mindful of of the need to weigh up this stability against the increasing costs being asked for out residents.

She added: “This budget recommends a 2.99 per cent increase in the Band D council tax charge. 

“While this remains within the government’s referendum threshold it follows years of similar increases though a prolonged cost of living crisis.

“We can only hope that residents of the new future West Surrey unitary do not pay the price of increases council taxes as a result of Surrey County Council’s rush to divide the west from the east without clarity on the massive debt (Guildford is to be merged with neighbours Woking and Spelhorne – who have combined debt of about £3billion). 

She added: “We must be cautious that these incremental hikes do not eventually deter visitors from our town centre.

“The town centre ecosystem is fragile. If parking is too high, people won’t come, shops and leisure facilities will close, and crucially the council will lose its main stream of income.”