Woking MP Will Forster has secured what he describes as “a lifeline worth £20 million a year to Woking Borough Council” after meetings with Jim McMahon, Minister of State for Local Government and English Devolution.
Mr Forster has urged the Government to step in and provide support to address the challenges faced by Woking Borough Council, which is some £2billion in debt.
“As Woking’s new Member of Parliament, I raised the plight of our borough council’s finances in my maiden speech and have met with the Local Government minister to discuss our challenges further,” Mr Forster said.
“I am pleased the new Government are listening to me about our situation. As an initial step, they have agreed to lower the interest rate Woking Council has to pay the Government on its borrowing, this will save the council around £20 million a year.
“This is a significant change, but I will be continuing to work with both the council and Government for a longer term solution.”
After the meeting the Government confirmed that they will no longer charge premium-rate interest on Woking Borough Council’s debts, which will save the local authority £20 million per year – the difference of 1 per cent on the £2billion debt.
They have also committed to a multi-year spending review and settlement which will give councils the security and stability they need to plan ahead.
“I will continue to push on the details of what this means for Woking,” Mr Forster added.