"Ministers have agreed to give bankrupt Woking council an unprecedented 500m taxpayer bailout under government plans to merge a dozen local authorities in Surrey. In a historic intervention, the communities secretary, Steve Reed, said the government would repay a significant chunk of the debt owed by the former Tory-run local authority. The bailout helps to smooth over the creation of two new councils in Surrey, in effect splitting the county in two."
"Woking declared itself in effect bankrupt two years ago after its former Conservative leadership ploughed vast sums of borrowed money into skyscrapers, a luxury hotel and other risky investments that turned sour. In one of the biggest financial failures in local government history, the local authority, which has been controlled by the Liberal Democrats since 2022, racked up debts of more than 2bn."
Ministers agreed to provide a 500m taxpayer bailout to bankrupt Woking council as part of plans to merge a dozen local authorities in Surrey. The government will repay a significant chunk of debt owed by the former Conservative-run local authority. The reorganisation will split the county into two new unitary authorities by merging 11 district and borough councils with the county council. Labour frames the reorganisation as a devolution drive to secure efficiency savings and economic growth. Woking became effectively bankrupt two years ago after risky investments, leaving debts exceeding 2bn. Ministers had been asked earlier to write off 1bn of Woking's debt. The communities secretary described the bailout as an unprecedented commitment acknowledging unsupported debt that cannot be managed locally.
Read at www.theguardian.com
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