03/06/2026
Report names Officials and Leaders responsible for Woking’s £2b debt:
The Grant Thornton Public Interest Report into Woking Borough Council examined the council’s governance, financial management, investment decisions, and leadership over a period stretching back to 2008. The report was commissioned following the council’s severe financial crisis, which led to the issuing of a Section 114 notice in June 2023, effectively declaring the authority unable to balance its budget.
Grant Thornton concluded that Woking Borough Council failed to achieve “best value” for residents due to serious weaknesses in governance, financial oversight, risk management, and decision-making processes. The report found that key safeguards designed to prevent financial failure did not operate effectively. As a result, the council accumulated exceptionally high levels of borrowing that were wholly disproportionate to its size, income, and financial resources.
A major focus of the report was the council’s extensive programme of property development, commercial investment, and regeneration projects. While the stated objective was to promote economic growth and protect the borough’s Green Belt, auditors found there was no coherent long-term investment strategy. Large-scale borrowing was undertaken without adequate challenge, scrutiny, or assessment of the risks involved. Many investments and developments failed to generate the returns required to support the borrowing used to fund them.
The report criticised both political leaders and senior officers for failing to ensure prudent financial management. It found that statutory officers, including those responsible for finance and governance, did not consistently fulfil their legal duties. Decision-making became concentrated among a small number of individuals, while councillors were often provided with insufficient information to properly scrutinise major financial commitments. Governance arrangements were described as inadequate, and risk warnings were not acted upon effectively.
Grant Thornton also highlighted weaknesses in financial reporting, transparency, record keeping, and internal challenge. Important decisions involving significant public money were sometimes taken without robust independent oversight. The council’s borrowing eventually reached levels that left it exposed to substantial financial risk, contributing to debts estimated at more than £2 billion.
The report concluded that Woking Borough Council now faces significant financial and organisational challenges as a result of historic failures. It made a series of recommendations aimed at improving governance, strengthening financial controls, increasing transparency, enhancing scrutiny, and ensuring statutory responsibilities are properly discharged in future.
Following publication of the report, the council formally accepted its findings, apologised to residents, and committed to implementing the recommendations through its Improvement and Recovery Plan. Government-appointed commissioners continue to oversee aspects of the council’s recovery and financial reform programme.
Overall, the Grant Thornton report describes one of the most significant failures of local authority governance and financial management in modern British local government, highlighting how inadequate oversight, excessive borrowing, and weak accountability created a long-term financial crisis for Woking and its residents.
OK....so, WHODUNNIT?
The Grant Thornton report does not present itself as a document assigning legal blame to individuals, but it does identify several former senior officers and political leaders as being central to the decisions and governance failures that contributed to Woking Borough Council’s financial collapse.
The individual most heavily criticised is Ray Morgan, who served as Chief Executive from 2006 to 2021. Grant Thornton described him as the “principal architect” and “driving force” behind the council’s investment strategy and borrowing programme. The report states that he exercised significant influence over decision-making and that challenge to his approach was often discouraged or marginalised.
The report also criticises former statutory officers for failing to provide sufficient challenge and oversight, including:
• Peter Bryant, who served as Monitoring Officer from 2008 until 2021. Grant Thornton found a lack of effective challenge from the Monitoring Officer despite responsibilities to ensure decisions were lawful and properly governed.
• Leigh Clarke, who held responsibility for the council’s finances from 2014 until 2023. The report concluded that statutory finance responsibilities were not effectively discharged and she has since become the subject of a Financial Reporting Council investigation alongside Ray Morgan.
• Douglas Spinks, identified as part of the long-standing senior leadership group that operated with limited external challenge over many years.
Among elected members, the report specifically names:
• John Kingsbury
• David Bittleston
Grant Thornton found that both former Conservative leaders were “very closely aligned” with Ray Morgan’s investment approach and supported major borrowing and regeneration projects.
The report is also critical of the wider political and managerial leadership culture, describing governance arrangements as weak, challenge as ineffective, and decision-making as concentrated within a small group of senior officers and political leaders.
However, the strongest criticism is directed towards Ray Morgan and the senior leadership team responsible for developing, approving, and overseeing the borrowing and investment strategy.
Police Action:
While a formal criminal investigation has not been launched directly by Surrey Police, the council’s chief executive referred the findings to the police so any evidence of criminality or misfeasance in public office could be examined.
Concurrently, the Financial Reporting Council (FRC) has formally launched an investigation into the conduct of both accountants:
• Ray Morgan: The council’s former CEO, who led the council's \(£2\) billion commercial borrowing spree, has publicly confirmed he is the subject of the investigation.
• Leigh Clarke: The council’s former finance director (Section 151 Officer) during the same period.
(YOU CAN ACCESS THE WHOLE REPORT IN THE 'FILES' SECTION OF THIS GROUP)
This is a link to the Council meeting that took place after the report was released.
Council - Wednesday 20 November 2024, 7:00pm - Woking Borough Council Webcasting
