SURREY leader David Hodge’s decision to reject the four-year financial settlement offered by government, has been attacked by opposition Lib Dem councillors.

Tory-led Surrey County Council faces a potential loss of £17.3 million when its Revenue Support Grant is withdrawn in the financial year starting 2019.

Local authorities had to decide whether to accept or reject the government’s funding settlement. Surrey’s Full Council recommended rejection, and Mr Hodge backed the view “it did not constitute a fair deal for Surrey residents”.

Mr Hodge is calling on government to release more funding, so that local authorities could take greater responsibility for their residents.

“This council needs long-term financial sustainability in the face of growing demand,” he said. “The government needs to fund the growing gap of social care, or alternatively, allow a financially debilitated council to fund the pressing social care needs of our residents.”

Responding, Surrey Liberal Democrats warned that the county council’s finances face an uncertain future after the decision to reject a guaranteed grant from the government lasting until 2020, although it involved having to pay back £17.3 million in the final year.

They objected an even worse funding deal could be foisted on the council by government.

Lib Dem leader Hazel Watson said: “Surrey County Council was offered a poor deal by the Conservative government but now there is even more uncertainty as the council has no idea what kind of funding it will receive in the future.

“The county council does not help itself by budgeting unrealistically for services such as adult social care and children’s services, which are expected to overspend this financial year.

“The Chancellor Philip Hammond, who is a Surrey MP, has already made clear his intention to boost spending in certain areas, such as house building and infrastructure, due to the uncertainty caused by Brexit. The fact that local government will not be receiving a spending boost makes it very clear that the Conservatives do not value local services and will not fund them properly.

“The message to residents here in Surrey is stark - the Conservatives have failed to get the resources needed to provide services across the county, and Surrey’s financial outlook remains uncertain.

“I am pressing the Conservative administration to negotiate the best possible deal with central government for Surrey County Council to protect services for Surrey residents. It is important however to ensure that the county council funding is spent wisely and that it is not wasted.”