The first government repayment was completed on 1 September with the settlement of an £8m loan, with a further £492m of loans expected to be repaid by the end of March 2027.
The government is effectively paying itself, as the money owed was from its own Public Works Loans Board, according to the Local Democracy Reporting Service.
Woking Borough Council leader Ann-Marie Barker said the financial support would help lessen the costs associated with servicing and reducing the council’s debt.
She said: “While this marks important progress, we recognise that Woking’s debt is an ongoing concern for residents across Surrey.
“There is still much work to do.”
Woking Borough Council declared itself effectively bankrupt in June 2023 following a series of borrowing and investment decisions.
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