THURROCK Council's cabinet has approved a 4.99 per cent council tax rise as the authority continues its struggle to recover from one of the worst financial crises in local government history.

Based on rules for 2024/25 and 2025/26 in England, a council tax increase of up to 5 per cent does not need a ballot of residents. 

The government allows local authorities with social care responsibilities to increase their share of council tax by up to 5% (comprising 3% for general spending and 2% for adult social care) without holding a referendum. Once again Thurrock Council has run right up to that limit.

Sweeping cuts to local services have happened over recent years - but more services will have less to spend going forwards.

The increase — made up of a 2.99 per cent general rise and a 2 per cent adult social care precept — was agreed at a cabinet meeting on Wednesday.

The Labour group ruling cabinet says the uplift is necessary to help stabilise finances after years of extraordinary debt.

Presenting the 2026/27 budget, Cllr Valerie Morris-Cook, cabinet member for resources, said the authority was still dealing with the consequences of "historic debt, collapsed governance and failed leadership" that had pushed Thurrock to the brink of insolvency.

"Thurrock's financial crisis was created by past failures," she told colleagues.

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"This administration inherited that mess, and for the past two years we have done the hard and disciplined work others avoided.

"We have stabilised the accounts, rebuilt governance and delivered the overwhelming majority of required savings.

"We refused to impose the 10 per cent council tax rise some argued for. Instead, this budget is responsible, proportionate and grounded in reality."

Thurrock issued a Section 114 notice, effectively declaring bankruptcy, in 2022 after revelations that the council had borrowed heavily to invest around £1 billion in commercial ventures, including more than 50 solar farms.

Many failed to deliver returns, leaving the authority with huge debts and prompting government commissioners to take partial control. Reports later found serious governance failings, including weak oversight that allowed a finance director to commit vast sums to risky deals. An inquiry by the Serious Fraud Office is ongoing.

Although debt remains high — forecast to reach £846 million in external borrowing by March 2026 — Cllr Morris-Cook said progress had been made.

The required government capitalisation direction, which allows councils to use capital resources — such as borrowing or asset sales — to fund daily service costs, has fallen from £691 million to £638 million, and the council has identified nearly £14 million in savings for 2026/27.

Cllr Morris-Cook said the budget "faces the numbers head on," setting a revenue requirement of £267 million against core funding of £198 million.

A £23 million underspend at the end of quarter three, after exceptional government support, showed the authority was "delivering, not denying."

The council also confirmed that member allowances will remain frozen and that a full review is not due until 2027. A six week public consultation drew 141 responses, with many residents stressing the importance of protecting local services.

Cllr Morris Cook concluded: "The position remains extraordinarily difficult and will for several years. But we are fixing the problems and putting Thurrock back on the path to stability."

The budget is yet to be agreed by full council on Wednesday (25 February), but its verdict is largely academic as the cabinet has the over-arching say