Woking Borough Council says the government has agreed to “aid the reduction” of its multi-billion pound debt.
The bailout will initially cover the debt owed by the effectively bankrupt borough in 2026-27 but could be extended if needed, according to the Local Democracy Reporting Service.
Council leader Ann-Marie Baker said: “It marks an important step towards addressing our debt position as part of wider discussions on the future structure of local government in Surrey.”
The Ministry of Housing, Communities, and Local Government has been contacted for comment.
Woking declared itself effectively bankrupt in 2023 with £2bn of debt, and has since increased council tax and cut services.
The problem has spilled into neighbouring councils after…
