Debt-laden Woking Borough Council approves budget
Woking declared itself effectively bust in 2023 with debts of about £2billion
A ‘transitional’ budget for Woking Borough Council has been approved as members claim it is in a “markedly different place to last year”.
Woking declared itself effectively bust in 2023 with debts of about £2billion. It forced the council to cut new spending, axe non-statuary services and increase tax by 10 per cent. In 2024, Woking approved a budget of emergency savings and damage control in an attempt to tackle its swollen debt of £2bn.
Now, the broke council is working on a ‘business as usual’ budget separate from the council’s legacy debt and borrowing costs. The deficit on the business-as-usual budget for 2025/26 is £2.8m which is expected to be covered by the Exceptional Financial Support. Woking council is still essentially spending above its resources, despite the level of cuts and savings made.
“This council has not asked for a penny more of government support than it needs,” said Cllr Dale Roberts, portfolio holder for finance, introducing the budget. He added Woking council “is doing everything it can to live within its means”.
The budget labelled by the council as one “the community can afford” – with exceptional support from the government. Crucial services have been saved after a major government ‘bail out’ was offered of £74.9 million for the 2025/26 financial year on top of the £96.5million agreed for 24/25.
Although Woking council wouldn’t exist if the government had not given “exceptional financial support”, Cllr Chris Martin said he did not like the “rabbit out of the hat” trick. He seemed to argue for a more substantial solution to the council’s overwhelming legacy debt rather than throwing money at the problem.
“This is not the government’s money, but the money that belongs to the people of our country,” said Cllr Peter Graves. He told members that Woking “should be a lesson for any council that wishes to go cap in hand to the government and think there is no impact.”
A sombre response was given by members in the chamber as the budget was passed through a full council meeting on February 27. Council tax increases will be officially voted on March 3.
Residents may have dodged a bullet as they will not be hit with increases above the normal council tax limit- unlike nearby Windsor. Instead, the people of Woking face a 2.99 per cent rise in council tax, like many other local authorities this year. The average Band D household will increase to £298.11 per month, according to council documents.
In a surprise move, Woking is reducing its car parking charges in the town centre for three hours from £5 to £3.50. Councillor Liam Lyons praised the drop as “amazing” and said it will “encourage people to spend longer in the town centre”. Parking for up to six hours will be reduced by 50p (from £8 to £7.50) and parking for three to 24 hours on a Sunday will be reduced by £1 (from £4.50 to £3.50).
Councillors applauded the hard work of officers for balancing the books, but expressed discomfort at above-inflation increases to some charges and services. Meals on wheels to fragile members of the community are facing a nearly 15 per cent hike in fees, generating almost £49k income.
“We are not in a position to subsidise non-statutory services such as community meals,” said Cllr Steve Greentree. He said the charges are high and the cost is high, but “it will fall as the council becomes more efficient”.
Woking’s balanced budget includes continued support for delivering core services, especially housing. The council has agreed to invest another £16m into taking care of its housing stock after many years of under-investment, according to a report.
Cllr Roberts told members the £16m was “four times historic levels”, however it does mark a slight decrease from the £16.8m set aside last year. Still, Cllr Roberts emphasised Woking council is investing in new homes, infrastructure and building projects by allocating 75 per cent of its capital budget for housing.