In a dramatic intervention, the government has approved a £500 million bailout package for bankrupt Woking Borough Council, marking one of the largest local authority rescues in recent history.
The financial lifeline comes alongside a radical restructuring that will see Surrey County Council take direct control of several key services in Woking, effectively sidelining the borough council's decision-making powers in critical areas.
From Financial Crisis to Government Intervention
Woking's financial collapse stems from disastrous investments in commercial property, particularly a £700 million town centre regeneration project that left the council with unsustainable debt levels exceeding £2 billion. The council issued a Section 114 notice in 2023, effectively declaring bankruptcy and admitting it could not balance its books.
Local Government Minister Jim McMahon described the situation as "one of the most serious financial failures in local government history," adding that the bailout was necessary to protect essential services for Woking's residents.
Surrey County Council Takes the Reins
The rescue plan involves a fundamental power shift within Surrey's local government structure:
- Surrey County Council will assume responsibility for planning and strategic decision-making in Woking
- Key services including children's services and waste management will come under county control
- Woking Borough Council will retain responsibility for day-to-day operations but with significantly reduced autonomy
- A government-appointed oversight board will monitor the council's finances for the foreseeable future
"This isn't just about writing a cheque," a senior government source explained. "It's about completely restructuring how local government works in this part of Surrey to prevent such catastrophic failures happening again."
Long Road to Recovery
While the bailout provides immediate stability, experts warn that Woking's financial recovery will take years. Council tax increases and service reductions remain likely as the council works to repay its substantial debts.
The situation has sparked broader questions about local government financing across England, with several other councils reportedly facing similar financial pressures from commercial investments gone wrong.
Residents and businesses in Woking now face an uncertain future as the full implications of both the bailout and the power transfer to Surrey County Council become clear in the coming months.
