Woking Council is looking to sell off development sites after declaring effective bankruptcy earlier this summer.
The council said it could not afford to complete a 1,200-home development at the Sheerwater estate, a regeneration scheme it was part way through building, and would seek “alternative options” to finish the project.
It has laid out a drastic package of cuts to local services after a property investment spree caused it to rack up a £1.2bn deficit.
Woking’s troubles stem from a programme of commercial investments and regeneration schemes involving hotels and skyscrapers overseen by its former Tory administration, piling up debts of £1.8bn – more than 100 times its annual £16m of core funding from council tax, government grants and other income.
The news comes after Birmingham City Council issued a section 114 notice, due to a £760m bill for equal pay and a £100m IT system, as well as £1bn in cuts from central government.
Other councils to use a section 114 in recent years include Conservative-run Northamptonshire and Thurrock, alongside Labour-run Slough and Nottingham. At least 26 English local authorities are thought to be at risk of issuing a section 114 notice within the next two years.
