Investments & Losses
The reckless lending decisions that pushed Woking to the brink of financial ruin
Over more than two decades, the Conservative-controlled Woking Borough Council borrowed vast sums from the Public Works Loan Board and lent them on to a web of council-owned companies and commercial ventures. The council acted simultaneously as shareholder and lender to its own entities — a fundamental conflict of interest that the Grant Thornton Public Interest Report found was “inadequately governed.” Successive Conservative leaders John Kingsbury and David Bittleston were found to be “very closely aligned” with CEO Ray Morgan's approach. Woking is not alone: every West Surrey council that accumulated unsustainable debt was Conservative-controlled at the time.
Total council debt: approximately £2 billion
Making Woking — a borough of just 100,000 people — one of the most indebted local authorities in British history, relative to its size.
Where the Money Went
Approximate figures based on available data. Total council debt approached £2 billion.
Thameswey Corporate Structure
Thameswey Ltd
Est. 2003
Parent company of the Thameswey Group. Established in 2003 as the holding company for the council's commercial activities.
100% owned by Woking Borough Council
Thameswey Energy Ltd
Est. 2005
Energy generation and distribution company operating combined heat and power systems and district heating networks in Woking.
Thameswey Housing Ltd
Est. 2006
Housing company established to develop and manage affordable housing in the borough. Received significant PWLB-funded loans from the council.
Thameswey Developments Ltd
Est. 2009
Property development company handling development projects funded by council borrowing.
Thameswey Central Milton Keynes Ltd
Est. 2013
Subsidiary operating energy projects in Milton Keynes, extending Woking ratepayers' financial exposure beyond the borough's own boundaries.
Thameswey Solar Ltd
Est. 2017
Solar energy subsidiary established to develop and operate solar energy installations.
Thameswey Maintenance Services Ltd
Subsidiary providing maintenance services for properties and assets within the Thameswey Group.
Thameswey Sustainable Communities Ltd
Company focused on sustainable community development projects within the Thameswey Group.
Victoria Square Woking Ltd (VSWL)
Special purpose vehicle created to develop and manage the Victoria Square mixed-use development in Woking town centre. The single largest recipient of council lending.
Woking Necropolis & Mausoleum Ltd
Company managing the historic Brookwood Cemetery, the largest cemetery in the United Kingdom.
Planet Woking Ltd
Subsidiary involved in commercial activities in Woking town centre.
Rutland Woking (Residential) Ltd
Residential property company operating within the Thameswey Group structure.
Other council-funded companies (not part of Thameswey Group):
GolDev Woking Ltd
Property development company that received £250 million in council lending despite having virtually no independent assets. One of the most egregious examples of reckless lending.
The council acted as both sole shareholder and primary lender to all Thameswey companies — a conflict of interest identified by the Grant Thornton Public Interest Report.
Investment Details
Victoria Square (VSWL)
Flagship mixed-use development in Woking town centre that became the single largest drain on council finances. Includes a Hilton hotel, residential apartments, and retail space. Massively over-budget, the project exemplifies the council's reckless approach to commercial investment.
Thameswey Group
Network of 13 council-owned companies encompassing energy, housing, property development, and other ventures. The Grant Thornton report found governance was 'inadequate' across the group. The council acted as both shareholder and lender to its own companies.
GolDev Woking Ltd
One of the most egregious examples of reckless council lending. The council lent £250 million to a company that had virtually no assets of its own and was entirely dependent on council funding.
Greenfields School
An £11 million loan from the council to a private school, raising questions about why a local authority was lending public money to a private educational institution at favourable rates.
Private School Loan
A further £6.4 million loan to a private school, adding to the pattern of unconventional lending that characterised the council's commercial activities.
Pub Acquisitions
The council used borrowed money to purchase multiple public houses in the borough, adding to its increasingly diverse and unconventional portfolio of commercial assets.
Opportunities Fund
A discretionary fund controlled by CEO Ray Morgan with minimal oversight. Allowed the chief executive to authorise spending without normal committee approval processes.