Low-Income Families in Surrey Set to Lose Out in Government Funding Shake-Up

A major government review of local authority funding threatens to hit some of the most vulnerable families in Surrey hardest, despite the county’s reputation for affluence.

The Fair Funding Review 2.0, currently out for consultation, proposes changes to how central government funding is distributed to local councils. One key change is the introduction of a new "resources adjustment" formula that assumes wealthier areas like Surrey can raise more money through council tax—particularly due to the high number of Band H properties in the county.

While this may sound logical on the surface, it paints a misleading picture.

What is a Band H Property—and Why Does it Matter?

Band H is the highest council tax band, and in Surrey, these homes are typically worth:

£1.5 million to over £5 million, with some reaching £10 million+ in high-demand areas.

Because of the number of such high-value properties, the government assumes Surrey has a greater "ability to raise funds locally", and so plans to cut central government grants accordingly.

A Formula That Punishes Need

Surrey has a high council tax base—but that doesn't mean all its residents are wealthy. Many low-income families, children with special needs, and older residents rely on council-funded services like early help, social care, and SEND transport. These are the very services that will be at risk if Surrey loses government support under the new formula.

“This change could push councils like ours over a cliff edge,” warned local Lib Dem Councillor Liz Townsend. “It’s a postcode penalty that fails to consider real need.”

Even though the government has proposed a transition period to phase in the changes, there are no guarantees that this will be enough to prevent significant service reductions by 2028, and that's against a backdrop of local government reorganisation, which in itself creates a huge degree of uncertainty around service delivery and hikes in council tax.

The Most Vulnerable Will Pay the Price

Reduced funding will affect core council services across Waverley and wider Surrey, including:

• Children’s services and safeguarding
• Support for families on low incomes
• Special educational needs provision
• Care for vulnerable adults and the elderly

In short, those with the least will feel the cuts the most.

Liberal Democrats Fighting for Fairness

The Waverley Liberal Democrats are urging the government to reconsider this flawed formula and to:

• Ensure that need—not property wealth—drives funding decisions
• Carry out a full equalities impact assessment
• Introduce longer-term protections for vulnerable families and essential services

📝 Make Your Voice Heard

The Fair Funding Review consultation is open until 15 August 2024. If you believe in protecting vital services for families, young people, and older residents in Waverley and across Surrey, we urge you to stand with the Liberal Democrats in challenging a funding system that unfairly penalises low-income households simply because they live in a county with high property values.