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The government has confirmed its intention to provide financial support to aid the reduction of Woking Borough Council’s debt ahead of the proposed reorganisation of local government in Surrey, according to a council report published today (Tuesday 29 April 2025).
As part of ongoing work to explore options for creating new unitary authorities in Surrey, the government has acknowledged the significant financial challenges facing the council cannot be managed locally in their entirety.
The Ministry for Housing, Communities and Local Government (MHCLG) confirmed its intention to provide an initial tranche of financial assistance to support repayment of the debt in 2026/27, prior to the implementation of reorganisation across Surrey.
The government is committed to achieving the best Value for Money for taxpayers, both locally and nationally, and the council remains committed to its financial recovery process and future asset rationalisation to support the reduction of its debt.
Importantly, the government confirmed that it will continue to support both the council and any new authorities created through the reorganisation process with the rationalisation of Woking’s assets, providing further interim financial assistance and commercial expertise where necessary.
This commitment ensures that both the council and its successor authority are equipped to manage the financial challenges ahead and deliver sustainable services for residents.
Leader of Woking Borough Council, Cllr Ann-Marie Barker, said: "We welcome the government’s statement of intent regarding future financial support. It marks an important step towards addressing our debt position as part of wider discussions on the future structure of local government in Surrey.
"Whilst there is much still to be agreed, this announcement provides a degree of certainty as we continue to work closely with government and other Surrey councils to secure a sustainable financial future for Woking and ensure the best possible outcomes for residents.
“We are doing all we can to put our house in order by setting a balanced budget and having a strategic plan to sell assets. We remain committed to delivering our Improvement and Recovery Plan to the ensure that we enter any future arrangements in the strongest position possible.”
The government’s announcement will be discussed by councillors as part of the Council’s consideration of the final proposals for local government reorganisation in Surrey during its meeting on Thursday 8 May 2025.
The government will consider the council’s financial position in the forthcoming Spending Review which will be announced on Wednesday 11 June 2025.