Woking council declares bankruptcy with £1.2bn deficit

Previous Tory leadership embarked on risky investment spree involving hotels and skyscrapers

Woking council has declared it is effectively bankrupt after admitting a risky investment spree involving hotels and skyscrapers overseen by its former Conservative administration had left it facing a deficit of £1.2bn.

The Surrey council, the most heavily indebted local authority in England, said it had issued a section 114 notice on Wednesday in response to “unprecedented financial challenges” facing the town.