THE first fallout from Woking Borough Council’s bankruptcy will be felt by some of the most vulnerable in the borough after an affordable homes plan was scrapped.

On June 7, the council issued a Section 114 notice that put a freeze on all new spending as it buckled under its £2.6billion projected debt and £1bn deficit.

Since then the borough’s leader, Cllr Ann-Marie Barker, warned during a meeting of the local authority’s executive committee that it would need to become a council that lived within its means.

In one of the first concrete examples of what that would look like, members heard plans to build affordable housing in Bonsey Lane would be scrapped.

According to papers presented to the committee on June 16, the council had plans to “support the provision of high-quality, sustainable, well-managed and affordable homes to meet housing standards and local needs, including those for key workers”.

The Bonsey Lane project, to demolish the existing garages on council-owned land and build seven affordable homes, had received planning permission in March 2023 and the bid for grant funding was submitted to Homes England shortly after.

The grant was turned down over concerns the council would not be able to deliver the project and the report says it “is no longer viable at the current time and will be closed”.

Cllr Ian Johnson (Mount Hermon, Liberal Democrat) said: “We did intend to provide seven affordable homes there but because of the financial situation the council is in, we couldn’t actually afford to continue with that development and will hopefully be finding somebody else to do that work.

“But we can’t do it ourselves.”

He said the council would have to work with partners going forward to be able to “provide the homes we so badly need”, and added: “We don’t currently have the finances to develop anything ourselves. Hopefully that will change in the future.”

Despite the council’s much-catalogued financial problems, Cllr Barker has said: “It is very much business as usual for everyday council services. 

“Your bins are still going to be collected, as will council rents, and repairs will still be done, planning applications will be decided.

“But we need to bridge a £9m budget gap in our day-to-day budgets. We need to become a council that lives within its means. That will mean changes in the future.

“We will need to make difficult decisions about how we deliver services to local people.

“We may need to offer a reduced service, to charge more for services or to work with partners and the voluntary sector to deliver some services.

“I recognise this is a very worrying time for council staff, local people, suppliers, businesses and charities.

“I can’t promise an easy journey ahead but I can say the council will treat everybody fairly, ask for the input of all those involved with the borough of Woking and inform everyone as we travel this challenging road.”