School set to delay repaying £2.4m owed to council

A private school that borrowed millions from a now-bankrupt council has told the authority it does “not currently have funds” to fully repay its debt.

Greenfield School in Old Woking, Surrey, was loaned £13.3million by Woking Borough Council, with £2.4m due on 25 November.

The council papers to be presented on Thursday state "the school may not be in a position to do this”.

The Greenfield School loans were mentioned in the Public Interest Report published on 5 November, into how Woking Borough Council's bankruptcy.

The Grant Thornton report revealed the council borrowed to invest in regeneration projects, and later to help its loss-making companies repay interest.

Other money was borrowed and then loaned to the private school, with the council at the time arguing lending money to the private sector would free capacity within state schools.

Calls for an inquiry into the loan were made in October.

Greenfield, with annual fees of £17,010, is paying 1% interest on the loan.

The meeting papers show the school repaid £851,098 on 11 October after selling assets.

The papers read: “No payment is required by the school until 25 November, and there has been no confirmation that the payment will not be made.

“However, the school has approached the council advising they do not currently have funds to make full payment and have discussed re-financing options.”

Options include further sales of properties, but according to council documents this could take take about two years to go through, if at all.

The other option is for the council to take over Greenfield assets itself.

The report recommends giving the school more time to pay the loan.

Greenfield School said it had nothing to add to what was in the council documents.

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