THURROCK Council's director of finance – who has found himself at the centre of a storm of concern over his decisions to borrow more than £1 billion – spoke bullishly about the authority's financial position this evening (Tuesday, 9 June), but warned there were tough times ahead.

Sean Clark delivered a financial update to the council's corporate overview and scrutiny committee which met virtually.

He told councillors that the authority had grown its reserves, which now stood at £17 million in total. And he said the upbeat financial position was due to the £33 to 35 million profit made from the council's investments in renewable energy.

And he said that thanks to government grants, the cost of coping with the coronavirus on the borough was just half a million pounds. He told councillors that the cost to the council so far of the pandemic was £9.7 million and £9.2 have been given to it by the government.

Mr Clark said he was comfortable with the current position of the council's finances, but he was concerned about the impact of Covid going into next year.

He outlined the amount that the council expected to gain by way of revenues from council tax and other taxes and that he expected there to be a reduction in income.

He said: "We collect £70 million in council tax, so for every one per cent we might lose, that's £700,000 and so you can see how that might add up quickly.

"I can't be sure of what the financial position is going to be. Looking at business rates, will all the businesses survive this? It is likely we will collect a lot less than estimated. It could easily run into several million pounds. I have no idea.

"We then have to look at what government might do. We are already looking at what we may have to do to balance the budgets.

"We are going to have to look at the capital program and see what may be deferred and what might carry on. We are at the start of a conversation."

Borrowing and investment

Mr Clark was briefly quizzed on the council's borrowing and investment programme but that will debated in depth at another scrutiny committee next month when he has been called to produce a report.

He added: "I am taking a report to the standard and audit committee in July. All the indications we are getting are that our investments are not impacted. Problems across the country have been more connected to retail contracts while renewable energy margins have not been affected.

"The surplus on investments are in the region of £33 to £35 million."

Mr Clark was then praised for his work and investment by committee vice chair Cllr Jack Duffin who said: "I would like to put on record a massive thank you to Sean Clark and his team around his investments. I would hate to see what position we would be in without them."

And in a sideways dig at political rivals who have criticised the borrowing project, recently reported by national media and first outlined by Thurrock Nub News in January, he added: "This process has been transparent and everyone had been kept in the loop."

Mr Clark outlined the way the council has managed the distribution of funds to businesses affected by coronavirus and highlighted one area which he described as surprising – around 300 businesses in the borough that claim business rates relief have not come forward to claim the £10,000 grant they are entitled to receive.

He said his officers were stepping up efforts to engage with them.

The council's portfolio holder for finance, Cllr Shane Hebb, who observed the meeting, spoke briefly to say: "Two words come to mind, 'unprecedented and sobering', there is going to be a collaborative effort needed going forward. We are going to have to face some realities."

That was a view echoed by committee chair Cllr Oliver Gerrish who said: "Clearly this a very sobering view of the challenge we are going to face over the coming years. For many years this will impact on the council's finances."