Commissioners hail progress at borough council and elimination of governance weaknesses

In their sixth report, delivered to the Ministry of Housing, Communities and Local Government in February and published this week, the Commissioners said the council had made substantial progress in addressing the local authority’s significant historic failings.

They wrote that further developments had been made towards establishing a ‘fit for purpose’ council.

“These advancements are notable, but there remain some areas where certain aspects of the Council’s operation still need to be resolved. This report also highlights these areas of concern.”

Woking has been subject to intervention since May 2023.

In relation to governance at the council, the Commissioners said: “The decision-making process remains sound, and the interface between members and officers recognises the respective roles in a way which contributes to the effective administration of the council.”

The report noted that:

• A member skills audit had been completed, and training had been offered in some of the main areas identified to enable members to effectively discharge their roles.
• The delegation scheme, which relates to officer decision-making, “continues to be clear and efficiently delivered”.
• Work had been undertaken to ensure that sound governance arrangements are understood by the council, management and the wider workforce, and are practised accordingly, and this was reflected in the training being undertaken.
• With regard to council-owned companies, a review of commercial governance had been undertaken which strengthens the respective roles of the local authority, its officers, the Shareholder Executive Committee, and company boards and their directors. This is soon to be approved by council, and the revised framework will then be embodied in the council’s constitution.
• There is an up-to-date set of contract standing orders reflecting legislative changes and identifying the respective roles in procurement decision making.

The Commissioners also noted that much of their concern regarding Woking’s historic failings had related to the shortcomings in risk management.

A robust approach to risk is now in place, and systems and procedures across the council wholly accommodate the concept of risk, they said. "This is now complemented by work being undertaken to embed risk through the local authority, and good progress has been made to date. The role of the Audit and Governance Committee has been expanded to include a regular review of the strategic risk register."

Elsewhere, the Commissioners said there had been considerable progress in the operation of the finance function, and the overall skills and capacity within the organisation. “It is the Commissioners’ view that finance has now moved from recovery towards an improvement journey.”

The Commissioners said the councils’ asset disposal programme had become clearer since their last report.

But they noted that all of the council-owned companies remain reliant on a continuing debt standstill provided by the council. “Due to the scale of debt in the companies, they remain balance sheet insolvent but are performing better through tighter cash management. They rely on the continued support from the council to enable the sale of assets.”

However, the Commissioners noted that it had been “a turbulent time” for the company boards and their chairs.

“During this time, two Chairs have moved on, meaning the Boards have had to be restructured. The appointment of an experienced Corporate Restructuring Officer (CRO), as directed by the Commissioners, has given rigour to the Boards and their decision-making processes. The CRO has also strengthened the business-as-usual operational management. This has enabled senior directors greater flexibility to concentrate on the prime objective of divestment of assets.”

The Commissioners' sixth report said it was clear that not all disposals and company issues will be concluded by vesting day, 1 April 2027, of the new West Surrey unitary authority.

“The council, therefore, needs to turn its attention to ensuring there are clear plans for the completion of the longer-term elements of the divestment programme,” the Commissioners said.

They added: “It will be important for the new authority to understand and be able to manage the liabilities, risks and financial implications of these plans. Woking Borough Council must, therefore, be clear about what is being handed over, the resources required to manage it and communicate this effectively to the new West Surrey Unitary Authority. Commissioners will support the council in doing this.”

The Minister of State for Local Government and Homelessness praised the continued progress made at Woking across governance, finance and transformation.

However, in a written ministerial statement this week, Alison McGovern stressed that transition readiness will be “of the utmost importance” for the final year of intervention ahead of the local authority’s abolition in April 2027 as part of local government reorganisation in Surrey.

In her statement the Minister said: “I recognise that the council faces continued challenges as it recovers from failure and welcome the progress that has been made in delivering the asset rationalisation programme.

“This, alongside our unprecedented commitment to repay £500 million of the council’s debt in 2026-27 as a first tranche of support, will be crucial to reducing Woking’s unsupported debt and providing value for money for taxpayers.”

She added: “I am grateful for Commissioners’ focus on readying the council for reorganisation, and the collaborative work undertaken so far with local partners to ensure an effective handover. I am clear that transition readiness will be of the utmost importance for the final year of intervention.”

Responding to the report, Woking Borough Council said it would streamline its Improvement and Recovery Plan to prioritise the commercial and housing themes that are said to require closer oversight and scrutiny.

It added that completion of the plan is on track to conclude in March 2027.

Sir Tony Redmond, Lead Commissioner at Woking, said: “Woking has made significant progress, and the Improvement and Recovery Plan is now at an advanced stage of completion with the fundamental governance weaknesses that led to historic failings largely eliminated.  

“This progress enables our work to be refined, with our attention now focused on the areas that still require further oversight. Commissioners will continue to monitor progress across the whole programme to ensure that improvements are firmly embedded and sustained.”

Sir Tony added: “Local Government Reorganisation brings its own challenges, but the council is making every effort to be fit-for-purpose and ready to meet the future Best Value standards set for the new West Surrey Unitary Authority.  

“We will continue to support the council’s improvement work while engaging with the West Surrey Joint Committee and with the Shadow Authority once it is established, as appropriate.”