A council in Surry has effectively declared bankruptcy with a £1.2 billion deficit in its budget owning to debt inherited from previous property sprees.
Woking Borough Council issued a section 114 notice (pdf) on Wednesday, halting all expenditure except essential spending, such as salaries and pensions for existing staff and fundings for delivering a minimum level of statutory services or protecting vulnerable people.
The Liberal Democrat-run council said its core funding in the 2023/24 financial year—consisted of council tax, retained business rates, and central government grants—only adds up to £16 million, while its debt portfolio was £1.8 billion as of March 31, 2023.
As a result, the council will not be able to balance its budget for a number of years, it said….