Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment his Department has made of the financial sustainability of the proposed West Surrey unitary authority.

As set out to the House on 28 October, we considered the two proposals for unitary local government received from Surrey councils on 9 May together with the responses to the consultation, representations and all other relevant information. In our judgement the proposal for East Surrey Council and West Surrey Council better meets the criteria set out in the invitation of 5 February 2025. In particular, we believe it performs better against the second criterion, as it is more likely to be financially sustainable. West Surrey Council will, subject to Parliament, comprise the current districts of Guildford, Runnymede, Spelthorne, Surrey Heath, Waverley, and Woking.

On 28 October, we also announced our commitment to repay in-principle £500 million of Woking Borough Council’s debt in 2026-27. This is a significant and unprecedented commitment given historic capital practices at the Council and the value for money case for acting to protect local and national taxpayers. This is a first tranche of repayment support, and we will continue to explore what further debt support is required at a later point. The Government remains committed to achieving the best value for money for the taxpayer in the rationalisation of Woking’s assets, and this process is likely to continue past vesting day in West Surrey. We are committed to supporting the new council with the rationalisation of Woking’s assets, whether through the provision of interim financial support and/or commercial support and expertise until this process is complete.