Call for council debt write-off before devolution

Total debt across all 12 local authorities in Surrey stands at around £5.5bn

A council leader in Surrey has called for local authority debts to be written off by central government before any proposed devolution plans move forward.

Tim Oliver, Surrey County Council's (SCC) leader, has written to communities minister Jim McMahon, saying any deal in the county would need to take into account the "significant financial risk of the level of debt held across the Surrey local government footprint".

Total debt across all 12 local authorities in Surrey stands at around £5.5bn - £2bn of which is in Woking and more than £1bn in Spelthorne, according to SCC.

A government spokesperson said there is "a framework to support councils in financial difficulty" and it will continue to "support financial recovery in areas where statutory interventions have been made".

Oliver wrote in his letter: "Any proposals for local government reorganisation will need to adequately consider how to ensure the sustainable operation of any new authority/ies in the absence of exceptional financial support from government or a level of write off."

A government inspection of the finances of Spelthorne Borough Council has been extended into 2025.

In November, Woking Borough Council officially apologised to residents for "the failings of the past".

The council declared itself effectively bankrupt in June 2023 and has increased council tax bills as well as making cuts to services.

Mr Oliver's letter to government also requested elections due this May to be held in 2026 instead, because of the plans to reform local authorities.

A SCC spokesperson said no central government response to its letter has yet been received.

Follow BBC Surrey on Facebook, on X. Send your story ideas to [e-mail] or WhatsApp us on 08081 002250.