THE government has agreed to allow cash-strapped Thurrock Council to borrow additional tens of millions to finance its budget - on condition it commits to pay down the debt in future by disposing of assets and cutting back on frontline services.

However, there are restrictions on what the council can sell. 

The government says: "For the first time additional expectations have been set out to protect treasured community assets, culture and identity" and councils have been told not to use sell off 'community and heritage assets'.

Thurrock has been given an exceptional financial support allowance of £72 million for the coming year so it can meet its projected budget.

A significant part of the budget is serving the near £1 billion debt accrued by its catastrophic 'borrow to invest' policy, which saw hundreds of millions lost in failed solar panel investments.

The new exceptional allowance figure has been worked out to include amendments to monies previously designated as the council continues to adjust its accounting records and unaudited accounts going back to 2022. 

The ability to borrow for the coming financial year is one of 30 special allowances announced by local government minister Jim McMahon which total hundreds of millions. 

The Exceptional Financial Support process has existed since 2020 to support councils facing unmanageable financial pressures. In line with the previous government's approach, support is provided through a financial flexibility, known as capitalisation, where the government permits councils to treat revenue costs as capital costs and means councils can meet those costs by borrowing.

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A statement from the government says: "The government is under no illusions about the scale of financial issues facing councils and is committed to restoring stability and bringing forward reform to ensure local government is fit, legal and decent and can play its critical role in providing the services communities rely on.

"Reform will take time however and there is potential for continued instability as we work to fix the foundations of local government. 

"That is why we confirmed in November 2024 that there will continue to be a framework in place to support councils in the most difficult positions. 

"The government has been clear that while we will continue to expect councils to make sure they are doing all they can locally to deliver for residents, this process will be collaborative and supportive of councils.

"On 20 February 2025, the government confirmed Exceptional Financial Support for councils who made a request for financial assistance to handle pressures that they considered unmanageable and to enable them to set balanced budgets. 

"The support is provided on an exceptional basis, and where relevant, on the condition that a local authority may be subject to an external review."

Some authorities, including Birmingham and Croydon have received allocations in excess of £100 million.

Support for Thurrock is £72 million, broken down as follows:

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"For support agreed in-principle for 2022-23, this has been revised to £130.0m (from £40.0m agreed in February 2024), for 2023-24, this has been revised to £184.0m (from £234.5m agreed in February 2024), and for 2024-25, this has been revised to £96.0m (from £68.6m agreed in February 2024)."