Budget approved for cash-strapped council

Woking Borough Council effectively declared itself bankrupt in June

A cash-strapped council in Surrey says a "transitional" budget has been approved for the upcoming financial year.

Woking Borough Council (WBC) effectively declared itself bankrupt in June 2023 with £2bn of debt as it was forced to cut new spending, axe non-statuary services and increase council tax by 10%.

On Thursday, the council approved a "business as usual" budget separate from the council's legacy debt and borrowing costs.

Councillors will vote on council tax increases on Monday, with residents facing a potential 2.99% rise.

The deficit on the business as usual budget for 2025-26 is £2.8m, which is expected to be covered by the government's Exceptional Financial Support.

The council's balanced budget includes continued support for delivering core services, including housing, and a reduction in car parking charges.

The council is still essentially spending above its resources, despite the level of cuts and savings made, according to the Local Democracy Reporting Service.

The council has labelled the budget as one "the community can afford".