Residents in Woking have reacted to news that all public spending for non-essential services would stop after the council crumpled under a £2 billion pile of debt.

Woking Borough Council issued a Section114 notice on Tuesday that means it can no longer afford the day-to-day running of services.

It comes on the back of years of heavy borrowing to pay for a redevelopment plan that saw the town transformed beyond recognition – but, as it turned out, at enormous cost.

Debt amassed primarily between 2016-2019  to pay for the Victoria Square and Sheerwater developments among others are set to reach £2.6 billion with a deficit of more than £1bn.

The council has asked for Government help as it tries to navigate a way out of the mess – and said it is hoping to avoid raising council tax.

However, with London’s Croydon borough, which went through the same process last year, raising council tax by a whopping 15 per cent, people are understandably nervous.

The News & Mail visited Woking to speak with the people who will be most impacted by the council’s crisis to hear first hand their views.

Derek Neale, 77, of Goldsworth Park, said: “It’s been a long time coming. You’ve just got to look at the previous CEO.

“I’ve voted Conservative and always have and this has nothing to do with any administration, just the CEO and the leadership of the council.

“It’s an absolute disgrace.

“I don’t hold much hope for the new administration to fix things."

Joel Sciamma, 64, lives in Windlesham in Surrey Heath and felt there were worrying parallels between the two boroughs. Surrey Heath Borough Council has been told the value of buildings it has invested in are now worth far less than what it paid with the the borough’s debt standing at  £160m.

Mr Sciamma said: “We are in a situation there that isn’t looking too great.

“Maybe this might cause a domino effect.”

He said the cutting of council funding from central government “has gone back decades so maybe this is will happen elsewhere too.

“It’s bizarre, These are some of the richest parts of the country.”

Sally Levett, 93, of Kingswood said: “They didn’t know that Brexit was going to happened  to them or lockdown but they don’t seem to have budgeted incredibly well and don’t know how they are strong to catch up.”

She added that she was surprised the financial crisis had hit home.

Mrs Levett said: “We are a rich borough, look at the amount of people in all the restaurants.”

Jacinda Delsander lives in Woking’s town centre and has seen much of its redevelopment first hand.

She said the new flats were built at the expense of good family homes and left the council with a white elephant.

Ms Delsander said the apartments were too small and lacked outdoor space meaning people didn’t want to live there and the value dropped.

“It’s ridiculous, it’s wasted money and that’s why they have found themselves in debt.”

Bankruptcy, she said, would mean “a reduction in public services that people needed in the middle of a recession where people are suffering from a massive rise in the cost of living.

“Why should we have to pay for their overspending?

“If you are a councillor, MP, or a government you need to know how to budget, everyone else has to know and now you’re punishing the people you are supposed to help.

Madeleine Tidbury Thorn, 67, lives in Chobham and said that public finances for councils had got increasingly difficult each year as a result of cuts in government funding for local authorities.

The impact of the council’s financial collapse, would be felt by all.

She said: “Council tax rises are inevitable.”

Molly Sykes, 20, is a student at Halia Conti in the town centre and was worried about how cutbacks to all non-essential spending would affect the town and its residents.

She said: “I know the council puts in a lot of money for us. 

“It’s allowed the musical theatre to be open Monday to Friday, 40 hours a week.

“I know they are helping with money for the building, I think it was nine million and they also support some of the students for their training.”