Taxpayers asked to shoulder burden as beleaguered council expected to merge with neighbouring authorities

Taxpayers are being asked to shoulder £1bn in debt amassed by a bankrupt Surrey council that will be merged in the government’s plan for the biggest transfer of powers to England’s regions this century.

Posing a fresh financial headache for the government, councillors in Surrey have requested that ministers “write off” £1bn in debt held by troubled Woking borough council to enable a merger between the county’s 12 local authorities.