Woking residents are likely to be hit with a ten per cent increase in council tax next year as part of the government’s commitment to helping the effectively bankrupt borough council set a balanced budget for 2024-25.

The council has received a letter from the Minister for Local Government, Simon Hoare MP, setting out the government approach to the financial support required. 

Mr Hoare said: “The scale of the council’s financial liabilities remains of significant concern and the level of support that the government may need to provide over time is unprecedented.

“As such, it is right that the council continues to take all necessary steps to support its own financial recovery, including the role that council tax can play in that recovery.

“In consideration of the scale and severity of Woking’s position it is the government’s view that an increase in council tax of an additional seven per cent above general referendum principles is appropriate and proportionate.

“Government has proposed a core council tax referendum principle of ten per cent for the council. 

“I am conscious of the impact on local taxpayers, particularly those on low incomes, of having to foot part of the bill for their council’s significant failings.”

Formal decisions on any council tax rises will be made as part of next year’s budget process, which usually happens in February.

Woking remains the largest local authority deficit ever after the outgoing Conservative administration left a £1.2billion deficit.

Cllr Dale Roberts, portfolio holder for finance, said: “We are pleased about the breadth of support being outlined by government despite the seriousness nature of the council’s liabilities.

“It demonstrates a willingness to return Woking to a long-term sustainable financial position.”

Cllr Ann-Marie Barker, leader of Woking Borough Council, added:  “Naturally we are concerned by the government expectation of a council tax rise of up to ten per cent.

“We understand what this means during a cost-of-living crisis.

“In practice, though, this is likely to mean a 50p a week increase for a Band D property as Woking receives only a small proportion (12 per cent) of local council tax.”

For residents, though, the borough’s council tax increase is only one part of a series of planned tax hikes.

Council tax in Surrey is primarily made up of three parts, the largest going to the county council, with an additional amount payable for policing, called the precept.

Surrey County Council leader Tim Oliver has said that it was likely its share of council tax would increase by 4.99 per cent.

And Surrey Police and Crime Commissioner Lisa Townsend has just launched her own annual consultation on what residents are willing to pay.

The survey describes a range of options based on an average Band D property, from below £10 per year to £13 annually.

Ms Townsend said: “I want to know whether you would be willing to pay a little extra to support our policing teams again this year.”

For more information, visit https://surrey-pcc.gov.uk/council-tax-2024