Guildford BC is at ‘serious risk' of failing to deliver Best Value after overspending by millions of pounds on a housing contract, reviews have found.

The Surrey authority commissioned senior officers' group Solace to review both its housing governance and Best Value governance after issues emerged, including potential fraud in its housing landlord function.

Solace has put the total overspend at £13.5m.

Its report uncovered a series of risks, including a housing software system that had not had the recommended updates for eight years, making budget monitoring ‘difficult,' and a lack of permanent housing surveyors.

In its Best Value governance review, Solace found Guildford was ‘at serious risk of failing in its statutory duty to deliver Best Value'.

The review also found there was no coherent improvement plan and a ‘debilitating and serious absence' of several important strategies, plans and systems.

Guildford has committed to all of Solace's recommendations, including appointing an independent assurance panel and developing an improvement plan.

Council leader Julia McShane said: ‘The people of Guildford deserve better from their council and for that we give a heartfelt apology and a commitment to put right the long-standing issues we have uncovered.'

Two council employees were suspended and five agency workers had their contracts terminated in September.

A police investigation and separate employment investigation are ongoing.