THE Chancellor of the Exchequer has judged it “unlikely” that there is any quick fix for Woking’s mountain of debt.

Jeremy Hunt spoke to the News & Mail during a visit to the town last week.

“From the Government’s point of view, we are aware of the pressures on local councils,” he said.

A team has been sent by the Government to review Woking Borough Council’s soaring levels of debt, forecast to reach £2.4billion by 2024-25. Concerns over the council’s borrowings were first raised with the then ruling Conservative group last year by Kemi Badenoch, who at that time was minister for Levelling Up.

Subsequently the minister for Local Government, Paul Scully, who has also since moved on, expressed similar misgivings, noting not only the scale of the debt but “the complexity of the council’s financial position”.

A toxic combination of huge debt and falling assets has seen the current Lib Dem administration warn setting an annual budget is “very challenging” and that “there is no money left”. 

“It’s just awful, we’re powerless,” said Cllr Will Forster, deputy leader of the council, at a meeting of the executive. “It is not within our gift to cope with this level of debt, we need Government help.”

The News & Mail pressed the chancellor on what support the Government could offer, such as writing-off the debts or granting dispensation for the council to raise council tax above agreed limits.

“We have to wait until we hear the result of the review from the Department of Levelling Up, Housing and Communities team,” said Mr Hunt. “But unlikely, I’d say, for either of those options.”

With the debt acquired under Woking's previous Tory administrations, and the nation still dealing with the economic turbulence caused by the disastrous Kwasi Kwarteng and Liz Truss mini-budget, did the chancellor feel there was a danger voters could no longer trust the Conservative Party with the economy?

“I think the confidence in our economy has improved since the autumn statement,” said Mr Hunt, MP for South West Surrey, saying he had put a strong plan in place for the country which was still feeling the effects of the pandemic, along with rising costs due to the war in Ukraine.

“It’s my job to persuade people that we can be trusted with the economy, but I think we are making good progress.”