Woking City Council is set to face external scrutiny of its finances after being declared an “outlier” by the government, even among councils heavily indebted in real estate deals.
Local government minister Paul Sculley wrote to the council last week: /twenty five.
“This is an anomaly among other local governments my officials have been involved with.”
Sculley also expressed concern about the council’s financing arrangements for major developments and the risks associated with high levels of debt over the long term.
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he wrote: We welcome your consent to such reviews. This review can be conducted on a non-statutory basis and will help identify how my department can help reduce your financial risk. ”
Woking’s debt arose under a Conservative government that was replaced last May by a Liberal Democrat government led by Anne-Marie Barker.
She said Woking’s high levels of debt “are the result of borrowing inherited by my administration to provide housing, sustainable energy, regeneration, and major long-term infrastructure projects.”
Cllr Barker added:
The new government reviewed major projects and “took prudent and responsible steps to put the Council’s finances on a sustainable footing in the medium term.”
The officers will work with the Surrey County Council’s finance and commercial teams to “make a significant difference in how the council funds its investment strategy, reducing its reliance on borrowing and attracting private investment to the borough.” She said they are formulating an improvement plan to
Woking’s medium-term financial strategy was discussed at a cabinet meeting in July.
It “would be impossible to finance”, noting that Parliament relies on revenues from car parks and commercial rents of £8m and £22m respectively to fund many services. [these] If this income were not generated”.
Woking will need to save £11m over the period to March 2026, the company said.
Mark Sumrian
