Timeline of Events
From the first PWLB borrowing in 1999 through over two decades of reckless lending, the unravelling, government intervention, and the restructuring of local government across Surrey.
Showing 47 events
PWLB Borrowing Begins
Woking Borough Council begins borrowing from the Public Works Loan Board to fund commercial and energy ventures. This marks the start of a strategy that would see debt grow to nearly £2 billion over the next two decades.
Ray Morgan's Strategy Takes Shape
Under CEO Ray Morgan, who had been in post since 1989, the council adopts an increasingly commercial approach. Morgan begins shaping a vision of Woking as an entrepreneurial council that would generate revenue through business ventures rather than relying solely on central government funding.
Thameswey Ltd Created
Ray Morgan is instrumental in the creation of Thameswey Ltd, a council-owned company that would become the parent of a network of subsidiaries. The company is set up to manage the council's commercial activities, initially focused on energy and housing.
Thameswey Energy Ltd Incorporated
Thameswey Energy Ltd is incorporated as a subsidiary to manage energy generation and distribution projects. The council positions itself as a pioneer in local energy provision, using PWLB borrowing to fund the venture.
Thameswey Housing Ltd Established
Thameswey Housing Ltd is created to develop and manage affordable housing in the borough. The council borrows from the PWLB to on-lend to the company, a model that would be replicated across multiple subsidiaries.
Council Enters Renewable Energy via Thameswey
The council expands its energy activities through Thameswey, investing in combined heat and power systems and district heating networks. Borrowing continues to grow as the council funds these capital-intensive projects.
Borrowing Passes £50m
Cumulative PWLB borrowing exceeds £50 million. The council's borrowing is already significantly above average for a borough council of Woking's size, but little external scrutiny is applied.
Thameswey Developments Ltd Created
Thameswey Developments Ltd is incorporated to handle property development activities. The Thameswey corporate structure continues to expand, with the council acting as both shareholder and lender to its own companies.
Borrowing Exceeds £100m
Council borrowing surpasses £100 million. The pace of borrowing begins to accelerate as the council pursues larger and more ambitious commercial projects. Internal oversight does not keep pace with the scale of lending.
Greenfields School Loan Agreed
The council agrees an £11 million loan to Greenfields School, a private educational establishment. The loan raises questions about why a local authority is lending to a private school at favourable rates.
Borrowing Accelerates with New Subsidiaries
Multiple new Thameswey subsidiaries are created or expanded. The pace of borrowing increases sharply as the council takes on larger PWLB loans to fund an ever-growing portfolio of commercial activities.
Thameswey Central Milton Keynes Ltd Created
Thameswey Central Milton Keynes Ltd is incorporated, extending the council's commercial activities beyond its own borough boundaries. Woking ratepayers are now funding energy projects in Milton Keynes.
Further Private School Loan
The council makes an additional £6.4 million loan to another private school. Combined with the Greenfields loan, the council has now lent over £17 million to private educational institutions.
Leigh Clarke Becomes s151 Officer
Leigh Clarke is appointed as the council's Section 151 Officer and Director of Finance, making her the statutory officer responsible for financial oversight and the lawfulness of expenditure. She inherits a council already deeply committed to its commercial borrowing strategy.
Council Begins Acquiring Pubs
The council begins purchasing public houses in the borough, adding to its increasingly diverse and unconventional portfolio of commercial assets. The purchases are funded through borrowed money.
Victoria Square Concept Approved
The council approves the concept for Victoria Square, a flagship mixed-use development in Woking town centre. Envisioned as a major regeneration project including a Hilton hotel, residential apartments, and retail space, it would become the single largest financial commitment in the council's history.
Victoria Square Development Begins
Construction begins on the Victoria Square development. The project is managed through Victoria Square Woking Ltd (VSWL), a council-owned company. Costs would ultimately escalate far beyond initial projections.
GolDev Woking Ltd Lending Begins
The council begins lending to GolDev Woking Ltd, a company with virtually no assets of its own. Over the following year, lending to GolDev would reach £250 million, making it one of the most egregious examples of reckless council lending.
Borrowing Passes £400m
Total council borrowing surpasses £400 million. The scale of debt is now extraordinary for a borough council, but the borrowing continues to be approved by council officers and members without adequate challenge.
£250m Lent to GolDev
Cumulative lending to GolDev Woking Ltd reaches £250 million. The company has minimal independent assets and is entirely dependent on council funding. The Grant Thornton report would later describe the lending arrangements as having inadequate governance.
Further Thameswey Expansion
The Thameswey Group continues to expand with additional subsidiaries and activities. Thameswey Solar Ltd is among the companies incorporated during this period. The network of council-owned companies now numbers over a dozen.
Borrowing Exceeds £1 Billion
Woking Borough Council's total borrowing surpasses £1 billion, making it one of the highest-borrowing local authorities in the entire United Kingdom. For a small borough council serving approximately 100,000 residents, the scale of debt is unprecedented.
Opportunities Fund Under Morgan's Control
Ray Morgan continues to control a discretionary 'Opportunities Fund' of approximately £3 million with minimal oversight. The fund allows the CEO to authorise spending without the normal committee approval processes.
Concerns Raised Internally About Debt Levels
Internal concerns begin to surface about the sustainability of the council's debt levels. However, the dominant culture established under Ray Morgan's long tenure makes it difficult for officers to challenge the strategy effectively.
Victoria Square Costs Escalate
The cost of the Victoria Square development continues to climb well beyond original projections. Construction complications and scope changes drive costs upward. The total commitment would eventually exceed £700 million.
COVID-19 Impacts Development Timeline
The COVID-19 pandemic causes delays to the Victoria Square development and other council projects. Construction timelines slip and costs rise further. The pandemic also reduces income from the council's commercial portfolio.
Borrowing Continues Despite COVID Pressures
Despite the financial pressures of COVID-19, the council continues to borrow to support its commercial activities and the Victoria Square development. Total debt approaches £2 billion.
Ray Morgan, Douglas Spinks, and Peter Bryant Retire
CEO Ray Morgan (32 years in post), Deputy CEO Douglas Spinks (37 years), and Monitoring Officer Peter Bryant (33 years) all retire within the same period. Their collective departure removes over 100 years of institutional knowledge and leaves the council before the full extent of the financial crisis becomes apparent.
New Management Discovers Extent of Financial Problems
Incoming senior officers begin to uncover the true scale of the council's financial exposure. The complexity of the Thameswey corporate structure and the scale of lending to companies like GolDev and VSWL become clearer under new leadership.
Financial Concerns Deepen
As the new management team continues its review, the severity of the financial situation becomes increasingly apparent. Asset valuations are questioned and the sustainability of debt repayments comes under serious scrutiny.
Liberal Democrats Win Control of the Council
The Liberal Democrats win a majority in local elections, taking control of Woking Borough Council from the Conservatives who had overseen the borrowing programme. New leader Ann-Marie Barker inherits a council on the brink of financial collapse.
£490m Asset Write-Down Discovered
A £490 million write-down of asset values is discovered and disclosed, revealing the massive gap between what the council's investments were claimed to be worth and their actual value. The Victoria Square development and Thameswey companies are at the centre of the revaluation.
Government Informed of Financial Crisis
The Department for Levelling Up, Housing and Communities is formally informed of the scale of Woking's financial crisis. The government begins assessing the need for direct intervention.
Government Sends in Commissioners
The Secretary of State for Levelling Up, Housing and Communities announces the appointment of commissioners to Woking Borough Council via a Parliamentary Written Statement. The commissioners are given broad powers to oversee the council's financial recovery. The team is led by Jim Taylor.
Section 114 Notice Issued - Council Effectively Bankrupt
The council's Section 151 officer issues a Section 114 notice, effectively declaring that the council cannot balance its budget and is bankrupt. The notice reveals a deficit of £1.2 billion, the largest of any UK council. All non-essential spending is immediately frozen.
Spending Controls Imposed, Services Cut
Following the Section 114 notice, severe spending controls are imposed. Non-essential council services are cut or reduced. Residents face immediate impacts including reduced leisure services, cuts to community grants, and the prospect of significant council tax increases.
First Commissioners' Report Published
The government-appointed commissioners publish their first report, setting out the scale of the financial problems and their initial assessment of what went wrong. The report highlights systemic governance failures and the dominance of senior officers in decision-making.
Second Commissioners' Report Published
The commissioners publish their second report, providing further detail on the council's financial position and the progress of recovery efforts. The report reinforces earlier findings about governance failures and the need for fundamental reform.
Third Commissioners' Report Published
The third commissioners' report is published, updating on recovery progress and the ongoing work to unwind the council's complex commercial arrangements. Questions about individual accountability continue to be raised.
Grant Thornton Public Interest Report Published
Grant Thornton publishes its Public Interest Report into Woking Borough Council, finding that the council's practices were 'potentially unlawful.' The report identifies excessive influence by the CEO, inadequate governance of Thameswey companies, failure by the s151 officer to issue timely warnings, and a culture that discouraged challenge. The report is damning in its assessment of how the council operated for over two decades.
FRC Opens Investigation into Ray Morgan and Leigh Clarke
The Financial Reporting Council opens a formal investigation into Ray Morgan and Leigh Clarke over their roles in the council's financial management. This marks the first formal regulatory action against individuals involved in the scandal.
Fourth Commissioners' Report Published
The fourth commissioners' report is published, providing the latest update on the council's financial recovery and the progress toward reorganisation. The commissioners note that while progress has been made, the council's financial position remains extremely challenging.
Government Confirms Two-Unitary Model for Surrey
The government confirms that Surrey will be reorganised into two unitary authorities: East Surrey and West Surrey. Woking falls within West Surrey, meaning neighbouring councils in the western area will share responsibility for managing Woking's legacy debt. The decision follows extensive consultation and is seen as partly driven by the need to address Woking's financial crisis.
£500m Government Commitment to Woking Debt
The government announces a commitment of £500 million to help cover Woking's legacy debt as part of the Surrey reorganisation deal. The commitment is essential to making the new West Surrey unitary authority financially viable, as it would otherwise inherit an impossible debt burden.
Surrey Structural Changes Order 2026 Debated in Lords
The Surrey (Structural Changes) Order 2026 is debated in the House of Lords. Peers discuss the reorganisation of Surrey's local government and the implications of Woking's financial collapse for the new unitary authorities. The debate highlights ongoing concerns about how Woking's debt will be managed.
Elections for New Unitary Shadow Authorities
Elections are held for shadow authorities that will oversee the transition to the new East Surrey and West Surrey unitary councils. These shadow councils will plan for the formal launch of the new authorities in April 2027.
New Unitary Authorities Become Operational
The new East Surrey and West Surrey unitary authorities become fully operational, replacing the existing two-tier system of Surrey County Council and eleven district and borough councils. Woking Borough Council ceases to exist as a legal entity, but its legacy of debt remains a defining challenge for the new West Surrey authority.