Government promises to help reduce £2.1bn Woking debt ahead of reorganisation

The Government has confirmed it will provide financial support to help reduce Woking Borough Council's debt ahead of local government reorganisation in Surrey, the council has revealed.

Whitehall has also agreed to assist the council and any new unitary authorities created through the reorganisation process with the rationalisation of Woking's assets, according to a report set to be considered in an extraordinary council meeting in Woking next month (8 May).

Concerns about how Woking's £2.1bn in debt could impact reorganisation were first raised in January when Surrey County Council's leader suggested the Government write off council debts.

In a letter to the Government, Cllr Tim Oliver said such a move could help tackle "the unique, significant financial risk of the level of debt currently held across the Surrey local government footprint".

The county council's interim proposal for reorganisation, submitted in March, meanwhile described writing off Woking's debt as a "key ask" to enable the success of reorganisation.

While Woking's £2.1bn debt will not be written off, the Government has committed to providing an initial tranche of financial assistance to support repayment of the debt in 2026/27, prior to reorganisation, according to a council report.

The Government will also provide further interim financial assistance and commercial expertise where necessary.

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."

Adam Carey