Local Government: Surrey
The question
To ask the Secretary of State for Housing, Communities and Local Government, what is the total estimated amount of Public Works Loan Board borrowing that is expected to be inherited by the new (a) West Surrey and (b) East Surrey unitary authorities according to information held by (i) her Department and (ii) the Debt Management Office.
Answered by Ministry of Housing, Communities and Local Government
It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt. Local authorities provide the Government with data on their borrowing, including source of borrowing. The data can be found at Live tables on local government finance - GOV.UK.
On 28 October 2025, we announced our unprecedented commitment to repay in-principle £500 million of Woking Borough Council’s debt in 2026-27, and we have now started this process. This commitment reflects that the council holds significant unsupported debt due to historic capital practices, and the value for money case for acting to protect taxpayers from the increasing cost of debt. This is a first tranche of debt repayment support, and we will continue to explore what further debt support is required at a later point. Any support must take account of value of money for local and national taxpayers.
We have committed to provide interim financial support to the new council until a final decision is made, and any support must take account of value for money. The Department continues to work closely with West Surrey shadow authority. On 15 July 2026, my predecessor Minister McGovern asked a new single Commissioner team across Woking and Spelthorne to work with the new councils to provide advice, challenge, and independent assurance and I encourage the shadow authority to work closely with the Commissioner team.
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