DESPITE a warning from a colleague, Thurrock Council's leader gave an upbeat response to news that things are not as bleak with the council's finances as they might have been.

Reviewing the council's financial position at a cabinet meeting, members heard that there was a £1.036 million budget underspend in the first quarter of the financial year – meaning its expected loss this year might not be the £184.4 million expected, just £183 million!

The first quarter report presented by finance portfolio holder Cllr Graham Snell revealed debt-laden Thurrock Council is managing to keep an albeit shaky grip on its finances a year after Government appointed commissioners took over the authority following the issuing of a s114 notice which effectively declared it bankrupt.

At Wednesday's cabinet meeting Cllr Snell urged caution and said directors of departments would need to keep a close check on their budgets for the rest of the financial year after reporting overspends even after belt tightening has already seen cuts to rural bus services and bins left uncollected.

He said: "The month three general fund position is a forecast underspend of £1.036million. The directorate position is forecast to overspend by £2.605million against a revised budget of £168.591million, a 1.5 per cent budget overspend.

"Directors with significant overspends are continuing to review their budgets to identify mitigating actions to bring them back within their envelopes and I expect to see an improvement in the next quarter.

Admitting the council's progress could be short-lived, Mr Snell added: "As a note of caution, the accounts for 2020/21 remain open so it is possible that issues could still be identified that will impact on that current position.

"Be under no illusion when we talk about underspend there is no triumph in that. This is just a realistic and honest appraisal of where we are right now. It is with the full understanding that at any time that could all change and that underspend could very quickly become and overspend."

However, the council's leader Cllr Andrew Jefferies, greeted the news enthusiastically and said: "This evening is the first cabinet one year on since the Government sent in commissioners and we've come a long way in the last 12 months.

"There is still a great deal to do but I now firmly believe we are now in a recovery process and making progress to restore the council to be able to deliver the services the people of Thurrock need and want. It has a bright future and I and all of us in this room, should look forward to delivering it for everyone in Thurrock."

The council faced a £469million deficit for 2022/23 and previously reported a budget predicted gap of £184.4 million for 2023/24, which included money that must be set aside to write down its debt.