Woking Council is on the brink of insolvency after amassing debts of £2bn to fund a property investment spree.
The Surrey council said it was at risk of issuing a section 114 notice, which effectively signals insolvency. It added that it was “in the territory” of being unable to meet its financial obligations, amid a surge in debt interest costs on its investments, which include a shopping centre, residential skyscrapers and 23-storey Hilton hotel.
According to budget papers, the council borrowed about £1.8bn for investment purposes but is only bringing in £38.5m, a figure expected to rise to £43.3m next year.
Woking is also committed to increasing its debt levels to £2.4bn by 2026, with much of the increase linked to its town-centre Victoria Square redevelopment, which includes a new shopping centre and a trio of tall residential and commercial towers.
