Government confirms plan to offer debt repayment support to Woking
The Government has confirmed its intention to offer financial support to Woking Borough Council in paying off its £2bn debt.
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In a statement issued this week, a spokesperson for the Ministry of Housing, Communities and Local Government (MHCLG) acknowledged that it is "not typical for a council's debt to be addressed or written off centrally", but said exceptional circumstances in Woking warranted the Government's involvement.
It said: "The Government accepts that there are exceptional circumstances in Woking Council due to significant unsupported debt which cannot be managed locally in its entirety.
"That's why we have committed to providing initial debt repayment support for the Council in 2026-27, and will ensure that any support takes value for money for national and local taxpayers into account."
The council's financial woes primarily stem from borrowing to fund two large commercial schemes in the council's portfolio – Victoria Place shopping mall and a housing regeneration project in Sheerwater – which failed to deliver expected returns.
The Government believes that, even after rationalisation of Woking's historic assets, it is likely that the majority of the council's remaining debt cannot be managed locally.
News of the plan first emerged in May this year, when councillors considered a report which revealed Whitehall had agreed to assist the council and any new unitary authorities created through the reorganisation process in Surrey with the "rationalisation" of Woking's assets.
It came after Surrey County Council's leader, Tim Oliver, raised concerns about how the debt might impact local government reorganisation plans for the region.
The Government has said it intends to provide the support in April 2026 and will be working with the council and its commissioners to agree on an appropriate amount of debt repayment.
It added that any debt support for Woking relates only to the council's 'unsupported debt' resulting from exceptional capital practices.
Adam Carey
Police Misconduct & Vetting Solicitor
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