Image source, Woking Borough CouncilImage caption, The Surrey local authority recognised that "difficult decisions" were required
ByChris Caulfield, Local Democracy Reporting Service and Joshua Askew, South East- Published2 hours ago
The government has officially begun reducing the debt pile of a Surrey local authority.
Officials have started paying down £500m of Woking Borough Council's historic £2bn debt.
The authority will be replaced by the new West Surrey Council in April 2027 following the dissolution of Surrey County Council and its 11 boroughs and districts as part of local government reorganisation.
The new council was forecast to start life with a £4bn financial black hole, largely due to Woking Borough Council's shortfall.
Residents have seen cuts to services, council tax hikes and the sale of public assets and its flagship projects as the local authority has tried to manage its debt.
'Still much to do'
The first government repayment was completed on 1 September with the settlement of an £8m loan, with a further £492m of loans expected to be repaid by the end of March 2027.
The government is effectively paying itself, as the money owed was from its own Public Works Loans Board, according to the Local Democracy Reporting Service.
Woking Borough Council leader Ann-Marie Barker said the financial support would help lessen the costs associated with servicing and reducing the council's debt.
She said: "While this marks important progress, we recognise that Woking's debt is an ongoing concern for residents across Surrey.
"There is still much work to do."
Woking Borough Council declared itself effectively bankrupt in June 2023 following a series of borrowing and investment decisions.
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