Woking Bankruptcy Report Publication Expected

Published on: 27 Sep, 2024
Updated on: 29 Sep, 2024

By Chris Caulfield

local democracy reporter

The independent audit report into how Woking Borough Council went bust is finally set to be published.

Forensic accountants Grant Thornton were called in after the local authority went bust with debts set to hit £2.6 billion in June 2023.

The council borrowed heavily from the Public Works Loan Board for investment and regeneration projects such as Victoria Square and Sheerwater.

Auditors were tasked with understanding the leadership and culture at the council when the key decisions were taken that led to its financial collapse.

The report, which was delayed due to the general election, is also expected to look into whether the financial control environment led to increased risks of fraud or if the council set any unbalanced budgets in the years following its failed investment strategy.

It is now expected that the value for money review into governance of the council’s investment decisions and how those decisions were scrutinised, will be made public in October.

It is understood that all those named directly in the report have seen extracts relating directly to them already.

Grant Thornton’s Joanne Brown, said: “We are now in the concluding phase of reporting the outcome from our VFM [value for money] governance review.

“The consultation period has ended, in accordance with our obligations under the Local Audit and Accountability Act 2014, and the report will be made public once finalised, which is likely to be in October 2024.”

The council has also restated that it will publish reports dating back to 2016 that had previously been marked confidential.

The knock-on effect of Woking Borough Council’s bankruptcy has been disastrous for public services as it seeks to rebalance its books.

The council has worked with government appointed commissioners to bring drastic spending cuts to lower its annual outgoings and has included huge job cuts, popular services slashed and 10 per cent council tax rises that will be felt for years to come.

The council has been told any additional government support is dependent on it proving it has taken all steps to cut costs. It restricts all new spending with the exception of protecting vulnerable people and statutory services and pre-existing commitments.

Non-statutory services include leisure, public toilets and community grant funding.