Council may take legal action over school's debt

Greenfield School owes Woking Borough Council £13.3m

A Surrey private school loaned £13.3m by a bankrupt council has still to pay its overdue debts – with the local authority saying it is taking "legal advice" to get its money back.

Greenfield School in Old Woking borrowed the sum from Woking Borough Council, with the authority at the time arguing the loan would free up capacity within state schools.

The school was due to repay £2.4m in November last year, but said it was not in a position to do so and instead offered a building it owned in exchange to cover the outstanding amount.

Councillor Dale Roberts, lead member for finance, said: "We made it clear the strong preference of this council was the school simply met their existing commitments.

"They are aware they are required to provide independent and professional advice on the viability of their plans to repay."

The council, which has a £2bn debt, told the school last November it did not have the capacity to take on any additional buildings.

At the council's executive meeting on Thursday it was discussed whether the school could "regularise" its repayments, reported the Local Democracy Reporting Service.

Mr Dale added: "Our needs must be front and centre to provide assurance the school will honour any revised terms."

The council declared itself bankrupt in 2023 and had to cut services while increasing council tax by 10%.

Greenfield School, which charges up to £17,010 a year, has previously told the council "it may not be in a position" to repay money owed.