Just over 10 years ago, the Coalition Government made a decision as part of its localism agenda that councils should take more responsibility for shaping their places and building economic and social infrastructure. The Public Works Loan Board was tasked to provide low-cost, long-term and fixed-rate finance for local authorities to use to provide homes, public realm, community facilities and investment in their areas.
The Conservative Administration, on a cross-party agreed basis with the Liberal Democrat Group used this funding to:
• Purchase Wolsey Place Shopping Centre and set about transforming Jubilee Square
• Transform the bandstand site into Victoria Place
• Regenerate Sheerwater, an area with substandard housing and insufficient amenities
• Provide housing and sustainable energy to the Thameswey group of companies
In the cause of investment in these projects the council has been able to borrow on a long-term basis at fixed low interest rates. This was done on a business case basis, the council having to show the costs of borrowing and return on investment for each project.
When Cllr Ayesha Azad took over as Leader of the Council in October 2020, the Conservatives moved to:
• reassess the risk profiles of the council’s financial policy in the light of Brexit and COVID-19
• commission EY to do an independent report and implement its recommendations
• set in motion a full review of governance of the Thameswey companies
• put in place resources to deal with accumulated scale of investment
The last Conservative administration from 2020-2022 only borrowed money needed to ensure the success of previously agreed investments. It moved away from opportunity purchases and concentrated on delivery of current major projects rather than seeking to invest further until governance arrangements and financial models had been updated and assured.
All investment borrowing by Woking Borough Council has been done in accordance with officer advice, in accordance with the Prudential Code and working with both HM Treasury and the Department for Levelling Up, Housing and Communities. The amounts are a matter of public record set out in accounts as well as successive Medium-Term Financial Strategies and were agreed on a cross-party basis.
It was unexpected to receive the letter from the Minister for local government in May as no previous communication had been given by the department to Woking Borough Council about its borrowing levels.
The Conservative group will cooperate fully with any independent scrutiny the government wishes to undertake.
