Surrey Heath: council warns of "difficult choices" on finances

Ms MacIntyre said: “The council secured long-term borrowings at fixed rates through the Public Works Loan Board [Government] and other financial institutions.

“The remaining £80m was financed with short-term, variable-rate loans reflecting the Bank of England base rate over time.

"Interest rate increases in recent years have led to a considerable rise in indirect service costs linked to our debt interest.”

Council leader Shaun Macdonald added: “The reality is that most councils are facing substantial financial pressures. Rising inflation, wage demands, and increasing demand for services, along with more complex needs, have created a projected funding gap in the sector of £6.2 billion over the next two years.