The leader of Woking Borough Council has warned that the authority faces significant financial challenges as it must pay back £60m of borrowing debt this year.
In a written statement following her re-election, Ann-Marie Barker outlined her priorities for Woking after the outcome of the local elections held on 4 May, in which the Liberal Democrat administration retained its majority at the council.
The Liberal Democrats gained four councillors, while the Conservative party lost four. The Labour party and Independents at the council each retained their one elected councillor, meaning that the Liberal Democrats won 80% of seats at the authority.
Barker wrote: “This is an historic moment. It is an honour and a delight to be the first leader of a re-elected majority Liberal Democrat administration.”
However, later in her statement Barker warned that when setting Woking Borough Council’s budget for 2023/24 the authority outlined that it was in “section 114 territory”.
She said: “That means we were able to set a budget for the current financial year, but not beyond. That threat has not receded. We face a £9.5m gap between what we need to provide services, and income.”
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Barker also highlighted the council’s high level of debt, which is forecasted to increase to almost £2.4bn by 2024/25.
“On top of this is the crippling challenge of paying back the borrowing. We need £60m for that alone in the year ahead,” she added.
“We have challenges. We are up for those challenges. We have the team to tackle those challenges.”
In October 2022, the former minister for local government, Paul Scully, expressed his concerns over Woking Borough Council’s debt and the lending arrangements for major development that the authority is undertaking.
The council has also been engaging with the Department for Levelling Up, Housing and Communities on its high levels of debt following a letter addressed to the authority by Kemi Badenoch in May 2022 when she was levelling up minister. The letter set out the government’s intent to put in place statutory powers to directly address instances of excessive risk from borrowing and investment practices.
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