Woking Borough Council has all but confirmed a ten per cent tax rise as part of an agreement over a government support package that will help the borough balance its budget.

However, details of the plan will not be made public until the papers are presented to the authority’s Thursday, February 1, 2024 executive meeting.

It comes after the borough’s leader, Cllr Ann-Marie Barker, and Minister for Local Government Simon Hoare met last week to finalise recovery plans.

The council’s share of tax will go up by ten per cent. In Surrey your bill comes in three parts; the largest goes to Surrey County Council with the Surrey Police and the Crime Commissioner also charging their share.

In December 2023, the government commissioners sent to help the council through the crisis said a legal budget could not be set for next year “without a significant and carefully structured government support package”.

According to Woking Borough Council, that package has been agreed. Cllr Barker, said: “I have written to the Minister for Local Government, Simon Hoare, to confirm the support package from government that allows us to set a budget next year.

“The government considers that an increase in Woking Borough Council’s proportion of council tax of up to ten per cent from April is appropriate and proportionate.

“Alongside the service changes and staffing reductions the council needs to make, this will allow us to live within our means in future.

“I know residents will find any increase difficult in the current economy. It is not an increase that I want to make, but is necessary to ensure the council can set a balanced budget.

“However, Woking Borough Council does receive only a small proportion of the council tax paid by local people. The overall increase will be one per cent on the bill. The average Band D property will pay 50p more a week.

“There is already support in place for those who find it difficult to pay council tax and the council will put further measures in place to support those in serious hardship.”

The borough effectively went bankrupt last year after the collapse of its investment strategy. It announced it could no longer afford to run day-to-day services and told residents to expect a vastly trimmed down council service for years to come.

Staff were told to slash about £10m from annual spending, including cuts to services, closures of community assets and job losses. 

Despite this, overspending worsened due to £3.4m in capital financing costs and £1.1m from the loss of a major tenant.

Writing to government in December 2023, the commissioners said urgent progress was needed to ensure the council could deliver budget savings and balance its books – even though the council had already slashed £8.4m of the £12m needed.

This does not include the additional £70m needed annually just to pay interest on its loans.

The commissioners noted in their report: “Woking Borough Council remains in an extremely vulnerable position due to its overhanging debt and its historical lack of rigour in its commercial activity and will need support from government to be able to balance a budget by March 2024. Capacity to meet this challenge remains a risk.”

Any formal increase must still be agreed by full council, expected to sit next on Thursday, February 8, 2024.