Surrey unitary council ‘could be bankrupt from day one’, say MPs

They said: “At the moment, it could be bankrupt from day one. We will continue to press the government to ensure that this council won’t start on the back foot.”
Councillor Caroline Powell, leader of the Residents’ Association and Independent Group on the county council, said she believed West Surrey Council was doomed to fail.
“All the debt and high needs will be in the west, leaving the east debt-free with low needs, it’s a recipe for failure,” she said.
The Ministry of Housing, Communities and Local Government said any future financial support for the unitary councils would have to deliver value for money, and would be subject to councils showing they are trying to clear the debt themselves.
A spokesperson said: “We have committed to supporting a new unitary authority with interim financial support for any legacy debt servicing costs from Woking Council until a final decision is made.”
Spelthorne said it would set out next month how it believes it can significantly reduce its debt without government support.
Woking did not respond to a request for comment.




