Woking council declares bankruptcy

It comes in response to what it describes as the unprecedented financial challenges facing the organisation, admitting an investment spree involving hotels and skyscrapers – overseen by the former Conservative administration – had left it facing a deficit of £1.2bn.  

 
The council was put into special measures by ministers last month amid rising concern in central government over the scale of its debt problems – with the process being overseen by a team of expert commissioners following the launch of a review. It’s thought the council’s troubles are so significant they could have an impact on the national government finances.   

Woking Borough Council chief executive Julie Fisher said: “The issuing of a Section 114 Notice is a very serious matter that rightly reflects the scale and breadth of the acute financial situation facing the council. 

“Through the commissioning of an independent financial review of the council’s borrowing and loans to its companies, we have a comprehensive understanding of our severe financial position which informed the Section 151 officer’s decision to issue a Section 114 Notice. 

“The council is required to meet within 21 days to consider the Notice. I am preparing a response to this Notice for an extraordinary meeting of full council that is being arranged for Tuesday 20 June to meet this requirement. 

“Following the secretary of state’s appointment of a commissioning team, I will be seeking their expertise and using their critical insight to help the council deliver an improvement and recovery plan at pace to ensure we take actions that are in the interests of the public purse.” 

The council’s leader, Liberal Democrat Ann-Marie Barker, added: “My administration has been very clear about the huge financial challenges facing the council due to the legacy of inherited debt. 

“The Notice makes clear the true scale of these challenges which are so significant that the Council cannot simply deal with them on its own. We must work in partnership with the whole of government and its agencies to support us in delivering a robust Improvement and Recovery Plan. 

“I understand the concerns and questions this will raise, and I am committed to maintaining transparency with residents and partners as we progress through this unsettling time. 

“Difficult decisions will lie ahead as we seek to balance the Council’s budget and address the unaffordable debt.”