Waverley Borough Council has approved its final full-year budget before local government reorganisation, following political clashes over parking charges, reserves and how much should be returned to residents.

Councillors agreed the 2026/27 budget at a meeting on Tuesday, February 25, including a 2.99 percent increase in the borough’s share of Council Tax — equivalent to £6.39 a year for a Band D property.

The rise sets Waverley’s portion of the annual Council Tax bill at £220.25 for a Band D home. The borough council collects Council Tax on behalf of Surrey County Council, Surrey Police and town and parish councils but retains only a small share to fund services such as waste and recycling, housing support, parks and environmental services.

The authority also approved its Medium-term Financial Plan, forecasting a balanced position for 2027/28. Waverley is one of only two Surrey councils, alongside Guildford, projecting balanced budgets across the next two years.

Finance portfolio holder Cllr Mark Merryweather (Lib Dem: Farnham Moor Park) said rising costs continued to place pressure on council finances, with inflation alone expected to add £1.5 million to next year’s spending.

“Setting a balanced budget for the next two years in the current climate is a significant achievement, and we have worked hard to protect the services residents rely on while continuing to invest in our borough,” he said.

The budget includes £6.5 million for new capital projects and £14 million to progress existing approved schemes.

Parking policy also formed a central part of the debate.

The approved budget already included £200,000 to fund a one-year trial of free parking for Blue Badge holders, alongside continued free Sunday parking in council-owned car parks. Cllr Merryweather said the measure reinstated funding removed under a previous Conservative administration.

Proposed changes to evening parking tariffs were also contained within the original budget proposals and were largely accepted within a Conservative amendment debated during the meeting.

Members were told providing one hour of free parking across the borough would cost about £2.8 million per year.

The budget also allocated £500,000 for car park repairs and upgrades, including lighting improvements, while parking charges at Brightwells Car Park in Farnham will be aligned with Waggon Yard Car Park for two years to support town centre trade.

Opposition Conservative councillors argued the council should use its final year before abolition in 2027/28 to reduce costs for residents.

Group leader Cllr Jane Austin (Conservative: Bramley and Wonersh) said the administration was “clinging to unrealistically cautious assumptions” and holding excessive reserves rather than returning value to taxpayers.

Conservatives said the budget relied heavily on interest earned from developer contributions, estimated by officers at more than £125,000 per month from Community Infrastructure Levy (CIL) and Section 106 funds.

Cllr Carole Cockburn said: “CIL is meant to contribute towards infrastructure growth - not prop up the council’s general fund via huge interest payments funding core services.”

The opposition also highlighted what they described as £6.89 million in cost increases across several projects brought to council during the past six months, including Wey Court East, Chiddingfold, Farnham Museum and the 69 High Street, Godalming redevelopment.

Their amendment proposed freezing parking charges for the final year of the council and extending the £1.40 evening parking rate to six nights a week. The amendment was defeated after debate.

During discussions on reserves, councillors heard the council’s general fund working balance was forecast at £3.2 million, intended to provide resilience ahead of the transition to a new West Surrey unitary authority.

An additional £150,000 was approved for the council’s Thriving Communities Fund to support voluntary and community organisations facing uncertainty ahead of reorganisation.

Cllr Merryweather said the council remained financially stable and pointed to savings generated through its partnership with Guildford Borough Council, which members were told had delivered more than £1.2 million a year in financial benefits.

The budget is expected to be Waverley Borough Council’s final standalone spending plan before the authority is replaced by the new West Surrey unitary council in 2027/28.