- 1 Apr 2016
- Reaction score
Ministers step in at Woking council as debts forecast to reach £2.4bn
External commissioners appointed as council’s debts expected to exceed 100 times its annual net income
Ministers step in at Woking council as debts forecast to reach £2.4bnExternal commissioners appointed as council’s debts expected to exceed 100 times its annual net income
A tiny council in England’s affluent home counties that invested nearly £2bn in risky property deals involving hotels and residential skyscrapers has been put into special measures by ministers amid fears of financial collapse.
The council will have debts of £2.4bn by 2026, the review revealed, 100 times the size of its annual £24m budget, and making it England’s most indebted council relative to its size with a notional debt of £19,000 a head for each of its residents.
The Liberal Democrats took control of Woking council in May 2022, after 14 years of Conservative control. The bulk of the commercial investments considered by the review were made between 2016 and 2019.