The UK government has officially commenced the repayment of £500m from Woking Borough Council’s accumulated £2bn debt. This financial intervention arrives as the Surrey local authority prepares for dissolution, with its functions set to transfer to the new West Surrey Council by April 2027.
The restructuring follows the abolition of Surrey County Council and its 11 constituent boroughs and districts. The incoming unified authority was projected to inherit a £4bn financial shortfall, a figure significantly driven by Woking’s existing deficit.
Financial relief efforts began on 1 September with the settlement of an £8m loan. The remaining £492m is scheduled for repayment by March 2027. According to the Local Democracy Reporting Service, the government is effectively settling debts owed to its own Public Works Loans Board.
Woking Borough Council leader Ann-Marie Barker acknowledged that the support would help reduce the costs associated with servicing the debt. However, she cautioned that the issue remains a concern for Surrey residents and emphasized that substantial work remains ahead.
Woking declared itself effectively bankrupt in June 2023 after a series of borrowing and investment decisions. Since then, residents have experienced reduced services, increased council tax rates, and the sale of public assets and flagship projects as the authority attempted to manage its liabilities.
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