Government announces significant debt relief for Woking

The government has announced a significant step forward in Woking Borough Council’s financial recovery, along with changes to the structure of local government in Surrey.

As part of its decision to move forward with the creation of two new unitary councils in Surrey, the Ministry for Housing, Communities and Local Government (MHCLG) has acknowledged that the scale of Woking’s financial challenges cannot be managed locally in full.

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

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

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.

Today’s 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.

Read more about the government’s decision to create two new unitary councils in Surrey.