Q
But, by how much that is the question?
The government has confirmed its intention to provide financial support to aid the reduction of Woking Borough Council’s debt ahead of the proposed reorganisation of local government in Surrey, according to a council report.
As part of ongoing work to explore options for creating new unitary authorities in Surrey, the government has acknowledged that the significant financial challenges facing the council cannot be managed locally in their entirety.
The Ministry for Housing, Communities and Local Government (MHCLG) confirmed its intention to provide an initial tranche of financial assistance to support repayment of the debt in 2026/27, before the implementation of reorganisation across Surrey.
The council has a core spending power of £16.9 million a year, but servicing its £2.1 billion debt was costing £1.3 million a week in interest alone.
The government says it is committed to achieving the best Value for Money for taxpayers, both locally and nationally, and the council remains committed to its financial recovery process and future asset rationalisation to support the reduction of its debt.
Notably, the government confirmed that it will continue to support both the council and any new authorities created through the reorganisation process with the rationalisation of Woking’s assets, providing further interim financial assistance and commercial expertise where necessary.
This commitment ensures that both the council and its successor authority are equipped to manage the financial challenges ahead and deliver sustainable services for residents.
Leader of Woking Borough Council, Cllr Ann-Marie Barker, said:
“We welcome the government’s statement of intent regarding future financial support. It marks an important step towards addressing our debt position as part of wider discussions on the future structure of local government in Surrey.
“Whilst there is much still to be agreed, this announcement provides a degree of certainty as we continue to work closely with government and other Surrey councils to secure a sustainable financial future for Woking and ensure the best possible outcomes for residents.
“We are doing all we can to put our house in order by setting a balanced budget and having a strategic plan to sell assets. We remain committed to delivering our Improvement and Recovery Plan to ensure that we enter any future arrangements in the strongest position possible.”
Councillors discussed the government’s announcement as part of the Council’s consideration of the final proposals for local government reorganisation in Surrey during its meeting last Thursday, 8 May 2025.
The government will consider the council’s financial position in the forthcoming Spending Review, which will be announced on Wednesday, 11 June 2025.
During the meeting on Thursday, Woking councillors heard that this decision represented a positive statement of intent to move forward on the issue, and discussions were being held with the Government on the details of a potential settlement.
The settlement of the Woking position in advance of unitarisation will take some of the financial pressure off the legacy for future unitary and strategic authorities. In the interim, the continuation of exceptional financial support will be critical to the setting of a balanced budget for Woking Borough Council in 2026/27.
How could Woking legally get into such a financial mess? Taxpayers nationally and locally should not be obliged to pay for this mess without a police investigation to confirm no crime has been committed.
Brian – I couldn’t agree more… How did Woking and the others in Surrey get in such a mess? – and as SCC is the SENIOR Tier of this current TWO LEVEL administration why did THEY not pick up on this earlier??? Or was it because they were in their OWN Financial MESS??