UK Government Plans £500m Woking Bailout Amid Surrey Council Split

The UK government has committed a £500 million bailout to Woking Borough Council as part of a major reorganization of local government in Surrey, aimed at addressing the council's massive debt crisis and restructuring services. This bailout, described as the "first tranche" of support, covers roughly a quarter of Woking's £2 billion debt, which resulted from risky property investments under previous Conservative leadership. Commissioners are continuing to sell assets to reduce the debt, and the government has left the possibility open for further financial aid to cover the remainder. The bailout accompanies the creation of two new unitary councils—East Surrey and West Surrey—merging the existing 12 councils to improve financial viability and service delivery. Officials emphasize that this intervention is exceptional and designed to prevent Woking's financial issues from impacting other Surrey residents. The reorganization is seen as a critical step to ensure sustainable local governance and safeguard public services in the region amid widespread council debts totaling around £5 billion.