Just before Christmas, Woking Borough Council received a letter from the Minister for Local
Government, Simon Hoare MP setting out the Government approach on the financial support
required for setting a budget for 2024/25.

The Minister acknowledges the collaborative approach Council leadership has taken whilst
remaining concerned by the extraordinary levels of Government support required. Though
other Councils, including Nottingham, Thurrock, Croydon, and Slough, have declared
effective bankruptcy, Woking remains the largest local authority deficit ever after the
outgoing Conservative administration left a £1.2 billion deficit.

The letter recognises that Woking will require unprecedented support if it is to become
financially stable and specifically outlines the need for assistance relating Minimum Revenue
Provision (MRP). It also explains that the Department are expecting an in-principal
capitalisation request in early January along with the Council’s proposal on Council Tax. In
preparation for this, Government has proposed a core Council Tax referendum principle of no
more than 10% for Woking within the provisional local government finance settlement. The
Government’s view is that such an increase would be appropriate and proportionate.

My Lib Dem colleagues and I are pleased about the breadth of support being outlined by Government despite the seriousness nature of the Council’s liabilities. It demonstrates both a thorough understanding and a willingness to return Woking to a long-term sustainable financial position.

This shows the rapid progress that can be made by a new leadership team. Whilst other troubled
Councils have struggled over many years, the Lib Dem administration in Woking has been able to engage
constructively without any of the defensiveness or denial that can be usual for distressed
Councils.

Naturally, we are concerned by the Government expectation of a Council Tax rise of up to 10%, we understand what this means during a cost-of-living crisis. In practice, though, this is likely to mean a 50p a week increase for a Band D property as Woking receives only a small proportion (12%) of local Council Tax.