Government Plans Financial Aid for Woking's £2.6 Billion Debt

Woking Borough Council accumulated over £2.6 billion in debt from risky property investments and declared itself effectively bankrupt in 2023, prompting significant government intervention. As the UK government moves to reorganize Surrey's local authorities into larger unitary councils, there are widespread fears that Woking's debt could threaten the financial stability of neighboring councils. In response, the government has committed to providing interim and potentially extended financial support to manage Woking's debt and to assist any new authorities formed during the reorganization. This support aims to prevent Woking's liabilities from overwhelming the new councils and provides a measure of financial certainty as structural changes proceed. However, Woking is still expected to continue reducing costs and selling assets to achieve 'best value' for taxpayers, even after reorganization. Council leaders have welcomed the government's support as a step toward stabilizing the region's finances, though much remains to be determined.