Glossary
Definitions of the local government, financial, corporate, and reorganisation terms used throughout this site.
The Woking scandal spans council finance, audit regulation, corporate law, and local government reorganisation. Many of the terms involved are technical or specific to the public sector. This glossary explains them in plain language, with context from the Woking case where relevant.
Financial Terms
- Section 114 Notice
- The legal mechanism by which a council’s chief finance officer (s151 Officer) declares the authority cannot balance its budget. Effectively a declaration of bankruptcy. Triggers spending controls and requires the council to meet within 21 days.
- Public Works Loan Board (PWLB)
- A government lending facility that provides loans to local authorities for capital expenditure. Offers lower interest rates than commercial lenders. Woking borrowed nearly £2 billion from the PWLB.
- Minimum Revenue Provision (MRP)
- The minimum amount a council must set aside each year from revenue to repay borrowing. Woking was found to have under-calculated its MRP obligations.
- Capital Expenditure (CapEx)
- Spending on long-term assets such as buildings, infrastructure, or equipment. Distinct from revenue expenditure (day-to-day running costs).
- Revenue Expenditure
- Day-to-day running costs of council services. Cannot normally be funded by borrowing.
- Prudential Framework
- The regulatory framework governing local authority borrowing in England and Wales. Requires councils to demonstrate that borrowing is affordable, prudent, and sustainable.
- Going Concern
- An accounting principle that assumes an entity will continue operating. An auditor’s going concern warning indicates doubt about an entity’s ability to continue trading.
- Disclaimer Opinion
- The most severe type of audit opinion, where the auditor states they cannot form an opinion on the accounts. BDO issued disclaimer opinions for Woking’s 2019/20 through 2022/23 accounts.
- Unqualified Audit Opinion
- A clean audit opinion indicating the accounts give a true and fair view. Does not necessarily mean the organisation is well-managed — only that the accounts are accurate.
Governance Terms
- Section 151 Officer (s151)
- The statutory chief finance officer of a local authority, responsible for ensuring proper financial administration and the lawfulness of expenditure. Named after Section 151 of the Local Government Act 1972.
- Monitoring Officer
- A statutory role responsible for ensuring the legality of council decisions. Must report to the council if any action would be unlawful. At Woking, this was Peter Bryant.
- Nolan Principles
- The seven principles of public life — selflessness, integrity, objectivity, accountability, openness, honesty, and leadership. Dr Gifty Edila found Woking officers were "driving a coach and horses" through these principles.
- Public Interest Report
- A report published by an auditor under Section 24 of the Local Audit and Accountability Act 2014 when they believe issues should be brought to public attention. Grant Thornton published one for Woking in November 2024.
- Government Commissioners
- Officials appointed by the Secretary of State to oversee a council in difficulty. Given powers to direct council decisions. Appointed to Woking in May 2023.
Corporate / Company Terms
- Special Purpose Vehicle (SPV)
- A subsidiary company created for a specific business purpose, often to isolate financial risk. Victoria Square Woking Ltd (VSWL) and GolDev Woking Ltd were SPVs.
- Person with Significant Control (PSC)
- An individual who owns or controls a company, as recorded at Companies House. Must hold more than 25% of shares or voting rights.
- Net Liabilities
- When a company’s total liabilities exceed its total assets. VSWL had net liabilities of £557.7 million.
- Impairment
- A reduction in the value of an asset recorded in the accounts. The £490 million asset write-down in October 2022 was an impairment.
Reorganisation Terms
- Unitary Authority
- A single tier of local government that provides all council services. Surrey is reorganising from a two-tier system (county + districts/boroughs) to two unitary authorities (East Surrey and West Surrey).
- Shadow Authority
- A temporary authority created to plan the transition to a new council structure. Shadow elections for West Surrey and East Surrey are scheduled for May 2026.
- Structural Changes Order
- The legal instrument used by the government to create new unitary authorities. The Surrey (Structural Changes) Order 2026 was debated in the House of Lords in March 2026.