Bankrupt Woking Council seeks £171m from the Government to balance its budget amid talk of service cuts and council tax rises.
The money would cover a lot of debt, as they owe £2.1 billion. £2 million covers daily costs, leading officials to call this budget “very difficult.” A balanced budget, however, could hurt many with mass layoffs or cuts to popular services.
They aim to balance the budget in three years. They will raise fees slowly, and service cuts will be gradual too, leading to improvement but not perfection.
Finance officer Stephen Fitzgerald stated that this budget is a key step for Woking, noting that many places face money troubles now. Woking’s debt makes budgeting hard, and balancing everything is very tricky. This plan moves them toward recovery.
The huge budget totals £162.8 million, including interest on their debt. The government’s approval is crucial, as the council needs £171.1 million.
A government reply is needed soon, forcing them to delay setting council tax. They need to know they have enough money. If approved, council tax will rise by 2.99%, not including police or county increases. They are still selling off community centers, and cuts to meal services may occur.
Some worry the plan might fail, with Councillor Stephen Oades speaking up noting that the budget still needs £2.8 million, asking the government to cover it. He wonders what happens if they get rejected and what is the plan if the government says no.
Councillor John Morley agreed, stating, “We aren’t living within our means yet.” The budget is the best they can do now, but things aren’t fixed, and more hard choices are coming.
Councillor Dale Roberts spoke later stating things improve greatly, all services stay, and housing is a priority. Council tax rises by about 3%. He thinks the council is doing all it can, fixing past problems and seeking balance.