Social Value Ideas for Woking Borough Council

Minimum Revenue Provision Underfunding

The council set aside insufficient monies to repay its large portfolio of debt (MRP - Minimum Revenue Provision). Outstanding MRP charges will approach £450 million by 31 March 2024, requiring materia…

“councillors also set aside insufficient monies to repay this very large portfolio of debt this is called the minimum revenue provision, this means tha…”

Severe Financial Deficit

Woking Borough Council faces a deficit of up to £1.2 billion in the current financial year (2023-24) against core funding of just £16 million from council tax, business rates and government grant. Thi…

“the council faces a deficit of up to 1.2 billion pounds in the current financial year and this against a core funding stream from council tax, busines…”

Future Year Budget Shortfalls

The council already faces a revenue budget shortfall of at least £10 million in 2024-25, which is forecast to rise to £150 million when new debt repayment charges and unbudgeted costs are included. Si…

“the Council already has a revenue budget shortfall of at least 10 million pounds in financial year 24 25, and the introduction of new charges for the …”

Weak Financial Controls and Governance Failures

The council has demonstrated multiple weaknesses in financial management including weak financial controls, inadequate record keeping, weak management review processes, lack of understanding of accoun…

“there is a long list of what needs attention. weak financial controls, weak record, keeping weak management, review processes, lack of understanding o…”

Asset Impairment and Loan Loss Provisions

Council assets funded through high borrowing have been revalued downwards (impaired). The £1.3 billion in loans to council companies are no longer secured on assets as intended, resulting in a project…

“these assets have been revalued downwards, the technical term is impaired, the council's loans to the companies, which total 1.3 billion are therefore…”

£1.2 Billion Deficit Crisis

Woking Borough Council faces a historic £1.2 billion general fund deficit, the largest in UK local government history. This unprecedented deficit resulted from years of unconstrained commercial invest…

“the 1.2 billion pound deficit which we can't easily find if ever. we still have a lot going for us in Woking a way to make sure that we keep Woking to…”

Section 114 Notice - Financial Crisis

Woking Council unable to set balanced budget for 2024-25 municipal year. Chief Finance Officer issued formal Section 114 notice on 7 June 2023. Council has borrowed £1.9 billion and projected borrowin…

“the Chief Finance Officer issued a section 1 1 4, notice, saying that the Council is now unable to set a balanced budget for the 24 25 year... Investm…”

Impaired Loan Values to Subsidiaries

Group accounts for 2023-24 show impaired loan values to subsidiaries totaling £766 million, comprising £735 million loan impairment and £31 million shareholding impairment. The council retains full de…

“We have impaired the values right down to the level that Interpath reported...we do still have to repay that full extent of that borrowing back to the…”

Section 114 Notice - Financial Emergency

Council issued Section 114 notice on 7 June 2023 following government review. Confirms three major financial problems: £11m General Fund budget gap, £1.9bn borrowing with £60m+ annual payments, and £1…

“Woking's financial woes were confirmed on the 7th of June when the council declared section 1 1 4. There are three major problems to tackle a gap of 1…”

Government Intervention & Commissioners Appointed

Department for Levelling Up Housing and Communities announced intervention on 25 May 2023. Commissioners appointed to oversee improvement programme. Recovery and improvement plan to be submitted to go…

“the Department for levelling up housing and communities announced an intervention into Woking council and appointed commissioners to oversee an improv…”

Full Council Meeting - Section 114 Notice Debate

Statutory Full Council meeting scheduled for 20 June 2023 at 7pm to debate Section 114 notice. Chief Finance Officer will present notice with full explanation of reasons. Chief Executive will present …

“when the whole Council meets on the 20th of June that it is a statutory meeting that's required after the declaration of a section 1 1 4 notice, the C…”

Woking Shopping dissolved

The Executive agreed to wind up Woking Shopping Limited as part of tidying the corporate structure before local government reorganisation. The company is dormant and has no ongoing operational purpose…

“Woking Shopping was a company that was set up to work between Moy Allen, the then owners of the Peacock Shopping Centre, and Woking Council, and it co…”