Greenfield School in Woking in Surrey is at the centre of a dispute over a large loan it received from Woking Borough Council, before the council declared itself bankrupt, Rayo has reported.

Greenfield School is preparatory school for boys and girls aged from six months to 11 years.

It appears the council borrowed around £11 million in 2019 for “capital projects” which it then loaned to the school, in effect behaving like a bank.

At a recent meeting Woking Borough Council was asked: “Will the council set-up an independent inquiry into the extraordinary use of taxpayers’ money into the loan to the single entity, Greenfield preparatory school?”

Councillor Ann-Marie Barker, who became leader of Woking Borough Council after the loans had been agreed said: “In July 2023, the council asked Grant Thornton, its newly appointed external auditors, to undertake a ‘value for money’ review, looking into the governance arrangements that relate to the council’s historic investment strategy.

“This is an independent report which is reviewing how past decisions, such as those related to Greenfield School, were made and the financial impact of these decisions on the council’s financial sustainability.

“The council will make the value for money review report, alongside our response to its recommendations, available on our website at the earliest opportunity.

“It is important to wait for the findings of the independent review before coming to any conclusions regarding individual decisions.”