Surrey council on brink of insolvency with debts of nearly £2bn

Woking says it is at risk of issuing section 114 notice, which would force central government to intervene

A local council in Surrey has signalled it is close to effective bankruptcy after amassing debts worth almost 2bn to fund a property investment spree, raising fresh questions over the fragile health of local authorities after years of austerity.

Woking borough council said it was in the territory" of being unable to meet its financial obligations, amid a surge in debt interest costs on its investments, which include a shopping centre, residential skyscrapers and 23-storey Hilton hotel.