Woking Council Apologizes for Financial Collapse

Woking Borough Council has formally apologized to its residents regarding “the failings of the past,” which resulted in the authority’s financial collapse. On Wednesday, councillors convened to review a public interest report prepared by the auditors Grant Thornton. This report examined past borrowing and investment choices that contributed to a debt of £2 billion. According to the report, the council’s accounting practices and systems were deemed “poor,” and it stated that “significant mistakes were made.” Woking declared itself effectively bankrupt in June 2023, subsequently raising council tax bills and implementing service reductions. Ann-Marie Barker, the council’s leader, stated that initiatives are underway to collaborate with local organizations to ensure residents continue to receive necessary assistance and support. Speaking to BBC Radio Surrey, she remarked, “I very much understand resident anger.” She added, “I think it’s a nice addition to say that as a council, as a body, and it was unanimously supported, that we do apologise for the failings of the past.” It was also disclosed at the meeting that government-appointed commissioners, tasked with financial recovery, will assess the roles of individuals identified in the report to determine if additional action or investigation is warranted. Joanne Brown of Grant Thornton, who presented the findings to the councillors, commented: “Overall we identified fundamental weaknesses in governance, decision making, scrutiny, risk management…and ultimately to comply with the duty of the council to evidence and achieve best value.” A separate report released on Wednesday by the commissioners indicated that the council’s debt has now reached £2.1 billion, and there is “no means” for the council to repay the entire debt using its own resources. This report stated: “Without financial intervention, the spiral of debt will continue, further increasing the costs to the public purse.” Woking, with an approximate population of 104,000 and an overall spending capacity of £16.9 million, faces “very significant challenges,” as underscored in the commissioners’ third report concerning the council’s financial state.