Woking MP Will Forster has asked the Government to write off the borough council’s debts that are not backed up by assets.
In a letter to Angela Rayner, the Deputy Prime Minister and Local Government Secretary, Mr Forster also asked for a multi-year settlement of financial support.
He said that, despite the council making significant progress and £785 million support for 2024/25 approved last year by Government-appointed commissioners, more help was needed.
Mr Forster urged the Government to start a review of which local services are protected following a Section 114 notice, effectively declaring a local authority bankrupt.
Services that are considered statutory are protected but non-statutory ones are not.
He reminded Ms Rayner that Woking Borough Council “is the most indebted local authority in the UK and declared a Section 114 notice on 7th June last year.”
Mr Forster wrote: “Many of my constituents found it appalling that community transport, leisure services and hot meals for vulnerable residents are not considered statutory.”
He added that the debts were “a result of a decade of failed investments under the previous Conservative administration” and that he and other Liberal Democrats were elected to run the council in 2022 after campaigning on responsible finances.
“Although I am campaigning for Government support for Woking, I want to achieve fairer council funding for all local authorities and to ensure lessons are learnt from what happened in Woking to ensure other councils do not have to go through this,” he wrote.
Mr Forster has been borough councillor for Hoe Valley since 2011. He has indicated he will not stand in local elections next year, including the one for Surrey County Council, where he has represented Woking South since 2009 and is Lib Dem group leader. He is also to be replaced as deputy borough council leader.