East Surrey Shadow Authority approves waste contracts, service configurations and council tax harmonisation

• A seven-year joint waste collection and street cleansing contract for Elmbridge and Mole Valley, running from June 2027, was approved, with options to extend to 2048 and an 18-month break clause exercisable by both future unitary authorities.
• The Executive endorsed in principle the framework for splitting around 550 service units between East and West Surrey for Vesting Day, with final decisions expected in September 2026 following further Member engagement.
• Council Tax Support schemes across East Surrey's five constituent councils will be harmonised from 1 April 2027 in principle, with detailed modelling commissioned at around £20,000 per authority and a full impact assessment on vulnerable households required.
• Harmonised Council Tax premiums were approved for second homes (100%) and long-term empty properties (100% to 300% depending on duration), to apply consistently across East Surrey from April 2027.
• The implementation programme has 25 of 97 critical milestones completed and remains broadly on track, though an amber confidence rating and emerging IT cost pressures were noted; total committed funding now stands at £29.379 million.

The East Surrey Shadow Authority Executive has approved a new seven-year joint waste collection contract covering Elmbridge and Mole Valley, endorsed in-principle harmonisation of council tax support schemes, and supported a framework for how services will be split between the future East and West Surrey unitary councils when they come into being on Vesting Day.

The meeting, held on 20 July 2026 at the Council Chamber, Elmbridge Borough Council, covered a substantial agenda of Local Government Reorganisation business.

Waste collection contract

The Executive gave consent to Elmbridge Borough Council and Mole Valley District Council to award a joint waste collection and street cleansing contract to a preferred bidder, running from 6 June 2027 to 5 June 2034, with options to extend until 2048. The contract replaces the existing arrangement with Amey, which is leaving the waste services market. Surrey Heath Borough Council and Woking Borough Council are also party to the joint contract.

The contract term was set at seven years to reflect the expected lifespan of the waste collection fleet and to preserve flexibility for the future unitary authorities to review service delivery arrangements. Members queried whether a ten-year term would have better supported future alignment of waste contracts across East and West Surrey, but officers explained the seven-year term was a deliberate balance between investment, value for money and flexibility. An 18-month break clause is included, exercisable by both unitary authorities jointly, on payment of breakage costs. The Executive was assured that the contract contains sufficient flexibility to accommodate future changes to collection methods, including separate collection of recycling streams.

The capital cost of replacing the vehicle fleet and an increase in the revenue budget for waste services will need to be factored into the 2027–28 East Surrey budget. Depot leases at Mill Road, Esher and Station Road, Dorking will be granted to the preferred bidder at a peppercorn rent.

The Executive also gave consent to Mole Valley District Council to enter into a new waste processing contract and ancillary lease with Grundon Waste Management Limited at the Leatherhead site. Following a fire in October 2025 at the Materials Recycling Facility at Randalls Road, the site has been operating as an interim waste transfer station. The preferred option is to formalise this arrangement if reinstatement of the facility proves unviable. Part of the discussion was held in private session due to commercially sensitive information.

Service configurations for Vesting Day

The Executive supported, in principle, the recommended configurations for how services will transfer from Surrey County Council and the eleven district and borough councils to the two new unitary authorities. Around 550 service units have been assessed, with recommendations covering which services should be disaggregated between East and West Surrey, aggregated by geography, or hosted temporarily by one authority on behalf of both.

Members were told the proposals represent a direction of travel rather than final decisions, with a further report expected in September 2026. Concerns were raised about the disaggregation of small specialist services, including the Mental Health Forensics Team and Physical and Sensory Support Services, where splitting provision between two authorities could present risks to service delivery. Officers acknowledged these concerns and committed to providing further detailed information before September. The Programme Director for Devolution and Local Government Reorganisation confirmed that most staff would transfer under TUPE arrangements, with future organisational changes a matter for the new councils after Vesting Day.

Delegated authority was granted to the Head of Paid Service, in consultation with the Leader and relevant portfolio holders, to amend recommended configurations should central government direction or delivery requirements make this necessary.

Council Tax Support harmonisation

The Executive agreed in principle to harmonise local Council Tax Support schemes across the East Surrey area from 1 April 2027. No decision was made on the design of the future scheme at this stage. Officers were instructed to commission detailed modelling at an estimated cost of around £20,000 per constituent authority, using external expertise. The Section 151 Officer was granted delegated authority to complete all procurement activities for that work.

Following a recommendation from the Shadow Overview and Scrutiny Committee, which considered the item on 8 July 2026, officers were also asked to provide a full assessment of the impact of any preferred option on vulnerable households. A member raised concern that one of the five constituent authorities might see a reduction in support relative to its current scheme, but the Interim Chief Finance Officer confirmed no preferred model had yet been selected and detailed modelling would inform the final decision.

Council Tax and Business Rates discretionary policy harmonisation

The Executive endorsed in principle a single harmonised discretionary Council Tax relief policy and a single harmonised Section 47 Business Rates relief policy across East Surrey from Vesting Day, covering hardship, exceptional circumstances, charitable and not-for-profit relief, and government-funded schemes. Detailed policies and implementation plans will be developed by the Revenue and Benefits Local Government Reorganisation Workstream before formal approval. The harmonised policies will be reviewed within twelve months of 1 April 2027 and at least every three years thereafter.

Council Tax premiums on empty properties and second homes

The Executive resolved to apply a harmonised schedule of Council Tax premiums across East Surrey from April 2027: a 100% premium on second homes; 100% on properties empty for one to five years; 200% for five to ten years; and 300% for properties empty for more than ten years. All statutory exemptions will be maintained. Officers noted that all five East Surrey councils currently apply equivalent premiums to long-term empty properties.

Implementation programme

The Executive noted that the implementation programme remained broadly on track, with 25 of 97 critical milestones completed. Recent completions include the enactment of Section 24, confirmation of standalone fire and pensions arrangements, establishment of key Shadow Authority committees, endorsement of service configuration proposals by the officer Implementation Programme Board, and commencement of recruitment for the permanent Head of Paid Service.

A further £1.2 million has been committed to the Enterprise Resource Planning system since the June 2026 meeting, bringing total committed implementation funding to £29.379 million. The overall implementation fund has increased from £35 million to £37.1 million, and officers reported that following a detailed review, the risk of overspending had reduced. Further IT funding requests are anticipated but are expected to remain within the overall budget. The Executive's overall delivery confidence rating remained at amber, and members were told that closer management of the IT and data theme would be required in the coming months.

Corporate Strategy

The Executive agreed an approach to further engagement with Members ahead of submission of a final Corporate Strategy to the Shadow Executive in September 2026. Members raised a number of gaps in the current draft, including insufficient reference to Special Educational Needs and Disabilities, climate change and sustainability, the protection of green spaces, and the condition of roads and highways. The Leader acknowledged the draft was a working document and that further workshops would be held before the strategy was considered by the Overview and Scrutiny Committee and then by the Executive in September.

The Leader also reported that a public survey on the visual identity of the new East Surrey Council had been launched and would remain open until 3 August 2026. Design work will be carried out by in-house teams from existing councils at no additional cost, with a proposed design to be presented to the Executive in approximately October 2026.

A statutory eight-week consultation on the establishment of a Foundation Strategic Authority for Surrey is expected to commence shortly, running through the summer until mid-September 2026. The Leader said this would not be a full public consultation but would involve engagement with named consultees.

The Executive also noted Executive Member appointments and responsibilities, which the Leader will formally notify to the Shadow Authority at its meeting on 29 July 2026. An item relating to the Mole Valley leisure centres contract with Greenwich Leisure Limited was withdrawn and deferred to a future meeting.