Woking Council receives a £74.9M bailout for 2025/26 and £96.5M for 2024/25 after declaring bankruptcy in 2023 due to debt.
The government calls it “Exceptional Financial Support.” Woking gets £74.9 million for 2025/26. They also got £96.5 million for 2024/25.
Woking declared bankruptcy in 2023. They had about £2 billion in debt. The council then cut spending and raised taxes.
They made risky investments hoping for big returns. Instead, they ended up with huge debts. Paying them back costs millions each year.
The council relies on the government now. The funds cover minimum debt payments. The government gave them all the money requested this week and an extra £2.8 million for services this year.
Without the government’s help, Woking would have stopped working. Councils must legally balance their budgets. The extra £2.8m will help with spending reductions.
Mass layoffs and asset sales occurred, and partners were found to run some services. Further cuts would be awful for everyone, the council stated.
Woking is one of 30 councils getting government support. Many local governments face financial issues now.
Council Leader Ann-Marie Barker welcomed the government’s decision. This support ensures they meet debt obligations and avoids impacting essential services, helping them balance the budget on March 3.
The council is working on debt reduction, selling assets, and improving management. They also want a lasting solution to their financial problems, continuing collaboration with officials.
In January 2023, an external review assessed Woking’s finances. It covered governance, finances, and investments.
The government wasn’t happy with Woking’s response, feeling it was too slow. So, they intervened in May 2023, appointing a team called commissioners.
By June, the council declared bankruptcy. By October, the commissioners discussed the serious problems and understood how hard it would be for Woking.