The UK government has commenced repaying a significant portion of Woking Borough Council's debt, amounting to approximately £2 billion ($2.5 billion). The initial repayment, totaling £8 million ($10 million), was settled on September 1. Further repayments are scheduled, with an anticipated £492 million ($617 million) expected to be paid off by the end of March 2027.
This financial arrangement involves the government essentially repaying itself, as the funds owed originated from its own Public Works Loans Board. This intervention aims to alleviate the financial burden on the council, which declared itself effectively bankrupt in June 2023 due to a series of borrowing and investment decisions.
Woking Borough Council leader Ann-Marie Barker acknowledged the progress, stating that the financial support will help reduce the costs associated with servicing and paying down the council's debt. However, she cautioned that the debt remains an ongoing concern for residents and that significant work is still required.