The UK government has extended its financial inspection of Spelthorne Borough Council until 2025, as concerns persist over the council’s significant debt levels and financial management practices.
The inspection, known as the Best Value review, began in May 2023 after Spelthorne’s “extremely high” borrowing was flagged.
By March 2023, the council’s debt had surpassed £1 billion, making it the second-highest among district councils in England. This translates to an average debt of £10,415 per resident, as highlighted in a BBC report earlier this year.
The review focuses on areas deemed problematic, including governance, debt management, and the prudence of the council’s financial decisions.
Spelthorne is one of only three councils currently undergoing a Best Value inspection, alongside the London Borough of Tower Hamlets and Warrington Borough Council.
Initially set to conclude in November 2023, the inspection timeline has now been extended into 2025 to allow for a thorough evaluation.
The council’s substantial borrowing occurred between 2016 and 2018, during which it made property investments to compensate for a reduction in government funding.
Spelthorne had previously defended its financial strategy, stating that income from these investments “comfortably exceeded” the costs of servicing its debt.
