Leader calls for council debts to be written off as part of local government reorganisation

The leader of Surrey County Council has suggested local authority debts should be written off as part of local government reorganisation.

In a letter to the Minister for Local Government and English Devoluion, Jim McMahon, Cllr Tim Oliver said reorganisation agreements should consider how to manage "the unique, significant financial risk of the level of debt currently held across the Surrey local government footprint".

He added: "Any proposals for local government reorganisation will need to adequately consider how to ensure the sustainable operation of any new authority/ies without ongoing exceptional financial support from Government or a level of write off."

The county council applied to be part of the Government's priority devolution programme last week, in a move that could see two-tier authorities in the county merged to become unitary councils.

Woking Borough Council, which is among 12 of the councils in Surrey, is said to have around £2.1bn in debt.

Another of Surrey's councils, Spelthorne Borough Council, meanwhile had around £1bn in debt as of March 2023.

Surrey County Council expects the process of negotiation and reorganisation to last around two years, with any new authorities in the county launching in Spring 2027.

Adam Carey