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Woking Borough Council
Section 114 notice issued 7 June 2023
Summary
One of England's smallest borough councils built up debts government reviewers put at close to £2.4bn — roughly 100 times its annual £24m budget — through a series of ambitious commercial property investments, including hotels, residential skyscrapers, and even a loan to a local private school. Auditors later described the governance behind the borrowing as 'wholly inadequate.'
The numbers
£2.4bn
Projected debt by 2026
£24m
Council's own annual budget
£1.2bn
Forecast 2023/24 deficit at notice
£6.4m
Loan to a local private school
100x
Debt vs. annual budget, roughly
Timeline
2010s onward
Woking pursues an ambitious programme of town-centre regeneration and commercial property investment, borrowing heavily — including for hotel developments, residential tower blocks, and other commercial ventures.
Ongoing
The council extends a £6.4m loan to a local private school — one of a range of loans and investments later scrutinised by auditors as part of the council's wider borrowing pattern.
2023
A government-commissioned review finds Woking's total debts are on course to reach approximately £2.4bn by 2026 — a scale auditors and commentators noted was roughly 100 times the council's own £24m annual budget.
7 June 2023
The council issues a Section 114 notice, triggered by a forecast deficit of £1.2bn for the financial year ending March 2024.
Following the notice
Auditors examining the council's finances describe a pattern of “potentially unlawful” lending decisions and “wholly inadequate” governance and oversight of the borrowing programme.
Since 2023
Woking has been working through a recovery plan under government-appointed oversight, alongside a steep council tax rise, as it attempts to stabilise its finances against debts vastly larger than any comparable authority of its size.
Where things stand
Woking remains under close financial oversight as it works through its recovery plan. The scale of its debt relative to its size — a small borough carrying a multi-billion-pound liability — makes it one of the starkest examples on this list of how commercial property speculation can overwhelm a local authority's finances.
Sourced from council and government reports, the Institute for Government, CIPFA, Local Government Chronicle, Room151, and contemporary news coverage. Some figures vary slightly between sources depending on scope and date — where that happens, we've noted the range rather than picking one number.