Woking Council has effectively declared bankruptcy after admitting a risky investment spree under its former Conservative leadership left it with a £1.2bn deficit. The Surrey council issued a section 114 notice on Wednesday, acknowledging it cannot meet current expenditure, marking what is believed to be the largest financial failure in local government history.
The council's troubles stem from a 15-year period of heavy borrowing to finance commercial assets, including a complex of skyscrapers with a Hilton hotel, plazas, and shops. Its debt is forecast to reach £2.6bn, and it has written down the value of its investment portfolio by over £600m. The council's core funding for 2023-24 is only £16m.
Liberal Democrat leader Ann-Marie Barker, whose party took over from the Tories last year, warned of potential service cuts. 'We're going to have to provide services in a very different way,' she said. The government has placed Woking in special measures, with commissioners overseeing the process.
Labour MP Meg Hillier, chair of the public accounts committee, called the debt 'staggering' and urged stronger oversight. The committee had previously warned ministers were 'blind' to risks from council investments. Woking joins Thurrock, Croydon, and Slough in financial distress after similar risky ventures.
