Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 18 March 2026, to Question 120065, on Best Value: Surrey, what steps will be taken to ensure that local taxpayers outside Woking in West Surrey are not expected to pay for the costs of servicing the legacy debt of Woking.
Putting Surrey’s local authorities on a more sustainable footing is vital to safeguarding the services residents rely on, as well as investing in their futures. As set out in the invitation letter, and consistent with previous restructures, there is no proposal for council debt to be addressed centrally or written off as part of reorganisation.
The Government has committed to repay in‑principle £500 million of Woking Borough Council’s debt in 2026–27 as a first tranche of support. This is a significant and unprecedented commitment given historic capital practices at the Council. It reflects our acknowledgement that, even after the rationalisation of Woking’s historic assets, there remains significant unsupported debt that cannot be managed locally.
When issuing the statutory invitation for Reorganisation proposals, the Government was clear in criterion (2f) that: “For areas where there are exceptional circumstances where there has been failure linked to capital practices, proposals should reflect the extent to which the implications of this can be managed locally, including as part of efficiencies possible through reorganisation.”
The Government is committed to achieving the best value for money for the taxpayer in the rationalisation of Woking’s historic assets, which will contribute locally to the reduction of debt in Woking, and this process may continue past vesting day into the new unitary authority. It is crucial that any debt support must consider broader value for money considerations for both local and national taxpayers.