New concerns over £10m loan to Woking

WOKINGHAM Borough Council will be accused of a “material and significant deception” at tonight’s full council meeting.

In the section devoted to public questions, Philip Meadowcroft will ask Cllr Imogen Shepherd-Dubey, executive member for Finance, to clarify the situation regarding loans to other local authorities.

He will say: “During the first nine months of 2023 Wokingham Borough Council made £75 million worth of loans to cash-strapped local authorities.

“Councillors and officials have repeatedly emphasised to me that these loans, including the

£10 million lent last June to the bankrupt Woking Borough Council, were underwritten or guaranteed by the Treasury.

“They have referred me to sections 6 to 13 initially (then just Sections 6 and 13 only) in the Local Government Act 2003 in support of their entrenched belief that Treasury guarantees for these loans actually existed.

“Nowhere, however, in Section 6 or 13 do the words “guarantee” or “underwritten” or “Treasury” or “Government” appear.

“Councillors and officials appear to be persisting in misleading and deceiving council, and residents, with false and misleading statements.

“This is tantamount to a material and significant deception.

“When and how will the truth be told, together with an apology?”

On June 8, 2023, Wokingham made a £10 million loan to Woking the day after the Surrey council issued a section 114 notice - effectively declaring bankruptcy.

That loan is due to be repaid in March along with £323,000 in interest.

Mr Meadowcroft asked a similar question at November’s meeting.

Cllr Shepherd-Dubey replied, saying: “It doesn’t matter to us whether a council is in a Section

114 state or not because it’s all underwritten by the Treasury.”