The government has confirmed its intention to provide an initial tranche of debt relief totalling £500m in 2026/27 to support repayment of the council’s debt, subject to progress with its asset rationalisation programme.

 Woking Council was put into special measures after years of financial mismanagement with a number of excessive building projects forcing the council into the equivalent of public sector bankruptcy facing debts of £1.9bn.

This support reflects the government’s commitment to achieving the best Value for Money for taxpayers, both locally and nationally.

The financial woes led to the launch of an investigation by the Financial Reporting Council (FRC) in February focusing on the work of senior former accountants at Woking Council, after ‘systemic failings’ were admitted by Woking councillors in November 2024.

After debt grew from £400m to £1.8bn between 2017 and 2022, and various damning audit reports were published last year, the accounting regulator launched the investigation into former accounting staff at the council, including the chief financial officer.

Although Woking Council’s investment strategy began in the early 2000s, the FRC is focusing on the period between 2017 and 2023.

The debt relief programme will offer some respite for local residents who have been landed with 10% council tax rises and major service cuts after the council was issued with a section 114 notice in June 2023. The s114 notice restricts all new spending with the exception of protecting vulnerable people and statutory services and pre-existing commitments.

Cllr Ann-Marie Barker, leader of Woking Borough Council, said: ‘This is extremely positive news for Woking. It marks a significant step towards addressing our debt position and follows the government’s decision to move forward with the creation of two new unitary councils in Surrey.

‘The announcement provides a degree of certainty as we continue to work closely with government and commissioners to secure a sustainable financial future for Woking and ensure the best possible outcomes for residents.

‘We recognise that Woking’s debt is an ongoing concern not only for our own community but for residents across Surrey. With government support in place and a clear strategy for asset disposal, we remain focused on delivering our Improvement and Recovery Plan and entering the new unitary council in the strongest possible position.’

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