William Eichler 22 February 2023

Woking Borough Council warns of possible S114

Woking Borough Council warns of possible S114 image
Image: Number1411/Shutterstock.com.

Woking Borough Council has warned that it is ‘in the territory’ of effective bankruptcy as it struggles with over £2bn of debt.

The local authority has published its financial plans, which will be decided on by an Extraordinary Council meeting tomorrow, setting out how it plans to balance its budget in 2023/24.

The council says it will find efficiencies and implement cost savings, and will use £8.3m in financial reserves. It will also increase council tax by 3%.

However, the council, which is currently subject to a Government review of its finances, has also said that it is not evident how it will deliver a balanced budget for 2024/25.

Woking Borough Council has about £2.4bn of debt due to £1.8bn in loans, including £700m for its Victoria Square development, and inflationary pressures.

This has led to the council warning it might have to issue a Section 114, which would mean a halt to all non-statutory spending.

A report for the Extraordinary Council meeting said: ‘The council is in the territory of S114 but as of the date of this report a S114 Notice is not required. This report however may lead to the issuing of a S114 Notice in 2023/24 as work on the 2024/25 budget progresses.’

Cllr Ann-Marie Barker, leader of Woking Borough Council, said: ‘Since my administration gained control of Woking Borough Council, getting its finances under control and presenting a balanced budget for 2023/24 has been our priority.

‘Achieving this has meant taking a responsible, affordable, and most importantly, a sustainable approach to the Council’s finances.’

Cllr Barker continued: ‘Despite the setting of a balanced budget, the Council’s medium and long-term financial position remain critical.

‘It remains unclear how the Council will establish future balanced budgets without making difficult decisions around the continued delivery of some services. Further cost savings are inevitable to reduce the unsustainable reliance on the Council’s financial reserves.’

Speaking ahead of Thursday’s meeting, Cllr Dale Roberts, portfolio holder for Economic Development and Finance, said: ‘Let me be clear. We face a mountain of unsustainable debt, together with an uncertain and challenging future. It will require painful decisions about which services we can deliver.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Product Support Analyst

Essex County Council
£33512 - £39425 per annum + Hybrid Working
*Experience the best of both worlds with our flexible hybrid working arrangements. Enjoy the freedom to work from home while still benefiting from in England, Essex, Chelmsford
Recuriter: Essex County Council

Security Architect

Essex County Council
£60049 - £70645 per annum + Hybrid Working
This is a 12 month fixed term contract or secondment opportunity.*Experience the best of both worlds with our flexible hybrid working arrangements. E England, Essex, Chelmsford
Recuriter: Essex County Council

Control Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£37602 - £45564 plus shift and weekend allowance
Are you looking for your next opportunity to work as part of a team in a 24-hour emergency control room covering the Boroughs of Richmond and Wandsworth. To be responsible for receiving and logging calls from the public, outside agencies and partners. Use Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior User Centered Designer

Essex County Council
£60049 - £70645 per annum + Hybrid Working
Interviews will be held on 29th and 30th October 2025.*Experience the best of both worlds with our flexible hybrid working arrangements. Enjoy the fr England, Essex, Chelmsford
Recuriter: Essex County Council

Network and Communications Lead

Essex County Council
£52621 - £61906 per annum + Hybrid working
Interviews will be held W/C 20th October 2025.*Experience the best of both worlds with our flexible hybrid working arrangements. Enjoy the freedom to England, Essex, Chelmsford
Recuriter: Essex County Council
Linkedin Banner