The government is facing a fresh financial challenge as taxpayers may be asked to assume £1 billion in debt across the troubled Woking borough council, part of a wider merger proposal involving Surrey's local authorities.
Labour's proposal to merge small councils into larger 'mega councils' aims to streamline local governance, but it raises concerns about residents inheriting significant debts from neighboring councils that have financial issues.
Tim Oliver, leader of Surrey county council, emphasized that any merger consideration must acknowledge the substantial financial risks posed by the current debt levels within the local government, specifically indicating the need for a debt write-off.
With local elections approaching in May, at least a dozen county councils are expected to request a postponement to facilitate merger discussions, raising questions about accountability and governance in transitional phases.
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