Woking Council Begins Repaying £2 Billion Government Debt, Council Leader Notes "Important Progress"

Woking Borough Council has initiated repayments on its considerable £2 billion debt to the Public Works Loan Board, a branch of the UK Treasury. This first tranche of funds has been transferred, signalling the start of a 50-year repayment schedule for the council, which faces a challenging financial recovery.

The council's debt is a direct consequence of its extensive property acquisition strategy, which included investments in commercial property and housing developments such as the Victoria Arch scheme. These ventures led to borrowing on an unprecedented scale for a local authority of Woking's size.

Council's Financial Strategy Under Scrutiny

In June 2023, the government intervened, issuing a Section 114 notice that effectively declared the council bankrupt. This move imposed strict controls on spending and necessitated the development of a long-term financial recovery plan. The council's leader acknowledged the payment as "important progress" but underscored that "there is still much work to do" to stabilise the council's finances.

A recent independent report highlighted significant governance failures and a culture of excessive risk-taking within the council, particularly concerning its investment decisions. The Department for Levelling Up, Housing and Communities has appointed commissioners to oversee Woking's financial management and governance practices for the foreseeable future, ensuring adherence to the stringent recovery measures required to address the substantial debt burden.