Surrey’s Liberal Democrat MPs have welcomed the Government’s £500 million bailout for Woking’s debt and long-awaited confirmation of sweeping local government reorganisation across the county.

Under the plans, all borough and district councils, along with Surrey County Council, will be abolished in 2027 and replaced by two new unitary authorities – West Surrey and East Surrey. Elections for the new councils will take place in May 2026.

Guildford, Runnymede, Spelthorne, Surrey Heath, Waverley and Woking will make up the new West Surrey authority, stretching from Haslemere to Staines.

The announcement follows years of uncertainty over the future of local government in Surrey and comes as the Government confirms an unprecedented £500 million write-off of Woking’s debt – the first time a local authority’s borrowing has been cancelled.

Woking MP Will Forster, who led calls for the bailout, said: “This is historic. The Government have never written off a local authority’s debt before. I am relieved they have finally taken my advice and acknowledged that the Conservatives have failed Surrey. This step means residents won’t suffer for years to come.”

Mr Forster said the move does not clear all of Woking’s debt but marks a vital start. “As Woking’s MP I will continue to push, with my colleagues, to ensure that this council isn’t saddled with historic debts. The Government have conceded that there will be a need for more support in the future.”

He also welcomed confirmation of the 2026 local elections. “The cast-iron guarantee that I asked for at PMQs has finally arrived, albeit a week later than I had hoped. I am happy that Surrey residents have their democratic right restored and will be able to vote next May.”

Mr Forster, Guildford MP Zoë Franklin, and Surrey Heath MP Dr Al Pinkerton said they welcomed clarity on the timetable for change but warned that the new West Surrey authority faces a challenging start.

“At the moment, it could be bankrupt from day one,” they said. “We will continue to press the Government to ensure that this council won’t start on the back foot.”

Woking’s financial crisis followed years of over-ambitious property investments under Conservative control, which left the borough billions of pounds in debt.