Woking may look like a prosperous Surrey commuter town, but beneath its new apartment towers and office blocks lies the biggest financial crisis faced by any local authority in Britain.

The borough council is carrying debts of more than £2.1 billion, which works out at over £20,000 per resident. That figure is the highest per-head of any council in the country and stems from years of high-risk borrowing and investment schemes that unravelled, leaving the authority unable to balance its books.

The collapse led Woking Borough Council to effectively declare bankruptcy in June 2023, prompting Whitehall to send in commissioners to take control. Since then, assets have been earmarked for sale and services cut back. For many residents, however, progress feels slow and the town is paying the price.

Locals say the once-busy centre is slipping into decline, with rising homelessness and shuttered shops. A teacher described relying on a food bank set up for school staff, while others say securing a GP appointment has become almost impossible.

“It feels like you’re just left to fend for yourself,” one resident told Daily Mail reporters.

Council leader Ann-Marie Barker acknowledged the scale of the challenge, blaming the “previous administration’s legacy of high-risk investment decisions”. She insisted that Woking was making headway.

“As part of our Improvement and Recovery Plan, we are tackling these challenges head on through a programme of asset rationalisation, debt reduction and stronger governance,” she said. “With the support of Government and our Commissioners, we are making progress and remain committed to securing a sustainable financial future for Woking.”

The problems in Woking are part of a wider crisis in local government finances. In February, ministers relaxed budgeting rules for a record 29 English councils, including Birmingham, Croydon, Thurrock, Slough and Nottingham, all of which have also declared themselves effectively bankrupt in recent years. The Office for Budget Responsibility warned in March that the growing number of bailouts highlights the risks facing public finances.

A government spokesperson said it recognised the funding system was “broken” and promised reforms to ensure councils can deliver essential services.

“We have announced over £3.4bn of new grant funding for local services on top of the £69bn already made available this year,” the Ministry of Housing, Communities and Local Government said. “We will go further to reform the funding system to ensure it is fit for the future.”