Councillors have agreed to approve Epsom and Ewell Borough Council’s budget for 2026/27.

This will be the final budget prior to Epsom and Ewell Borough Council dissolving and the new East Surrey unitary authority becoming responsible for the facilities and services currently provided by the borough and county councils.

At a meeting on Tuesday, councillors said, like many other local authorities, Epsom and Ewell Borough Council has faced financial pressures in recent years due to rising inflation and the increasing demands of homelessness provisions.

However, they have identified £700,000-worth of savings through, what they say, was a “careful review of capital and maintenance budgets and more favourable government funding, particularly for temporary accommodation costs.”

Council tax will rise by 2.98%, which equates to an additional £6.93 per annum or 13.3 pence per week for a Band D equivalent property.

With Consumer Prices Index inflation between 3.8% and 3.2% in the autumn, the council says this still represents a below inflationary increase for residents and remains one of the lowest council tax levels in Surrey.

The impact of these changes has helped reduced the original three year budget gap from just over £5 million to £579,000 and enabled the 2026-27 budget to be balanced without the use of reserves.

Specific investments for the coming year including £750,000 additional investment to meet rising demand for homelessness and temporary accommodation and £974,000 in Disabled Facilities Grant investment to support vulnerable residents.

Councillor Neil Dallen, Chair of the Strategy & Resources Committee, said:

“I am pleased that we have been able to deliver a balanced budget without the use of reserves that still provides real value for money for our residents and local communities, while ensuring the borough’s finances are stable ahead of the formation of the East Surrey unitary authority in April 2027.

“Over the past year, services were asked to identify further efficiencies for 2026/27 where possible and seek new opportunities to reduce pressure on council budgets, which contributed to a saving of around £700,000.

“I also welcome the provisions allocated in the Local Government Financial Settlement from central government, in particular the increase in funding to help with temporary accommodation costs.

“Temporary accommodation costs have been one of the biggest expenditures for the council in recent years. Our housing team has worked tirelessly to prevent homelessness and reduce the need for temporary accommodation through schemes such as the Private Sector Leasing Scheme and Rent Deposit Scheme, however supply has often outstripped demand. So, I’m pleased that the government has recognised the challenge and accepted that they should be contributing to the cost.”

“I am also pleased that the government has finally got to grips with EPR (Extended Producer Responsibility) and manufacturers of poor packaging are now contributing to the council’s cost of managing it.

“The Residents’ Association-run Council can be proud of its achievements over the last 90 years and are ready to contribute its knowledge and experience to the East Surrey Unitary Authority.”