The news comes following a council meeting this week which addressed the need to find £1.8 million worth of savings this year.
The failure of councils to balance budgets can lead to Section 114 bankruptcy notices being issued as was the case with Croydon.
When this happens, all new spending must stop.
As it stands, Mole Valley must find a further £760,000 of savings or income for the 2026/27 financial year.
A council spokesperson says “usable reserves are expected to stand at £10.3 million by March next year.
This is above the minimum £7.2m threshold needed for financial security” and it is confident budgets can be balanced.
Council’s statement in full.
“Our ongoing Transformation Programme, Evolve 2026, is making progress toward the planned £3.7 million savings over the MTFP period, which is essential to balance our budget in the medium term without any net use of reserves over the 4 year medium term plan.
“Although some savings have taken longer to materialise and we estimate that we may have to use £300,000 from our reserves this year, our usable reserves are expected to stand at £10.3 million by March 2025, which is above the minimum £7.2m threshold needed for financial security.
“We’re confident that, with the plans we have in place, the 2025/26 budget will be balanced. However, we must continue to approach spending with caution and work over the next twelve months to identify additional savings for the future.”
