Calamity-struck Woking BC may need to write off up to £1bn after a series of disastrous investments – a debt so big it would impact on Government borrowing.
Days after the Government intervened at the troubled authority, The MJ has learnt there is no way to plug the unprecedented £2.4bn hole in its budget.
The authority’s assets are under review, but it is thought that ministers will have to bankroll the authority to avoid a complete ‘fire sale’ of assets at low prices.
Details of the write-off have yet to emerge, as the council and central Government wrestle with how to deal with the debts.
A source told The MJ: ‘The gap in Woking is so severe that things like exceptional financial support, capitalisation won’t be enough because they’ve got no cash.
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