Massive debts and costs of Local Government Reorganisation must be paid by Government


Massive debts and costs of Local Government Reorganisation must be paid by Government
The Issue
Local Councils’ unserviceable debts run up over decades simply must be written off and the full costs of Local Government Reorganisation must be covered by Government if they want reorganisation as per their white paper of the 16th of December 2024.
It is simply not fair or justifiable for residents to end up footing the bill through the most unfair tax, Council Tax, for poor decision making by Councils (who asked for the loans) and Central Government (who made them – through the Public Works Loan Board (PWLB)) and rushed reorganisation being pushed through by Government.
Woking Borough Council has run up over £2 billion in debt starting in 2004. The cost of servicing that debt is now £171million a year versus an annual budget for services of £23million. Putting up Council Tax in Woking or even across the whole of Surrey to cover this is immoral and simply wrong, penalising those already struggling with the cost-of-living crisis. Whilst there are wealthy parts of Surrey there are also pockets of real deprivation that continue to be hit hardest by this unfair tax along with many hard-working families on limited budgets already struggling to make ends meet.
There are also other Councils in Surrey, and nationally, that have run up huge debts, including Spelthorne, Thurrock and Warrington, all of whom have had Government Inspectors imposed for 5 years. After 18 months Government Inspectors still have no solution for Woking other than writing off the debt – so why not just do it?
Please sign this petition to get the Government to commit to writing off all the unserviceable PWLB debt accrued by councils and fully fund the costs of enforced Local Government Reorganisation to avoid massive rises in unfair Council Tax, that hits the least well off hardest to cover the costs.
3,236
The Issue
Local Councils’ unserviceable debts run up over decades simply must be written off and the full costs of Local Government Reorganisation must be covered by Government if they want reorganisation as per their white paper of the 16th of December 2024.
It is simply not fair or justifiable for residents to end up footing the bill through the most unfair tax, Council Tax, for poor decision making by Councils (who asked for the loans) and Central Government (who made them – through the Public Works Loan Board (PWLB)) and rushed reorganisation being pushed through by Government.
Woking Borough Council has run up over £2 billion in debt starting in 2004. The cost of servicing that debt is now £171million a year versus an annual budget for services of £23million. Putting up Council Tax in Woking or even across the whole of Surrey to cover this is immoral and simply wrong, penalising those already struggling with the cost-of-living crisis. Whilst there are wealthy parts of Surrey there are also pockets of real deprivation that continue to be hit hardest by this unfair tax along with many hard-working families on limited budgets already struggling to make ends meet.
There are also other Councils in Surrey, and nationally, that have run up huge debts, including Spelthorne, Thurrock and Warrington, all of whom have had Government Inspectors imposed for 5 years. After 18 months Government Inspectors still have no solution for Woking other than writing off the debt – so why not just do it?
Please sign this petition to get the Government to commit to writing off all the unserviceable PWLB debt accrued by councils and fully fund the costs of enforced Local Government Reorganisation to avoid massive rises in unfair Council Tax, that hits the least well off hardest to cover the costs.
3,236
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Petition created on 12 May 2025