THE abandonment of plans to merge Thurrock and Basildon Councils has not stopped a big chunk of Thurrock's millstone financial debt being chipped away with a £200 million government grant.

In March this year an announcement about the Westminster windfall was shrouded in some concerns, with Thurrock's then Labour-led administration trumpeting the news – despite many imponderables at the time.

Chief among the concerns was what shape the council might be in once the cash came in – at the time an announcement was still to be made about which council or councils Thurrock might be paired with in Local Government Reorganisation.

The government ultimately opted to back a union between Thurrock's unitary council and Basildon's district council. Both carry huge debt and there was a lot of concern about how finances would be merged and the joint debt managed.

Thurrock's Labour administration was accused of producing an over-optimistic forecast of how the council's funds might be at the financial year end. But it was one of its last forecasts before being swept aside Reform won a landslide victory at the 'all out' borough election in May, winning all but four of Thurrock's 49 seats.

In the end, the councils merger was taken off the table and Thurrock still has no real guidance of what its long-term future might be.

The government's offer came with a number of conditions and caveats, and cynics wondered if the new controlling group, with little experience of governance, could cope.

However, an announcement today (Wednesday, 7 October) has delivered an upbeat message – albeit one without a statement of exactly how the council's finances stand.

The Ministry of Housing, Communities and Local Government's commitment has been honoured and it will enable the council to begin repaying up to £200 million of historic debt as part of its long-term financial recovery programme.

A statement from the council says 'close and constructive collaboration' between the authority, the government-appointed Commissioners and the Ministry has paid dividends.

Cabinet member for finance, Cllr Sara Poyntz, said: "We have been working hard to make savings, divest from investments and sell assets that are no longer required by the council, but the sheer size of the debt means that it is too much for one council to recover from alone.

"I am extremely grateful to the government for this financial support and to everyone who has worked with us to secure it, including the Commissioners. This support recognises the progress the council has made in addressing the financial challenges it inherited.

"It will enable us to begin repaying up to £200 million of historic debt and will create ongoing savings by reducing debt repayments and the amount of interest owed. This will make a significant difference to our financial position and support our longer-term plans to become financially sustainable.

"While this is a major step forward, there is still more work to do. We remain committed to delivering our recovery programme and ensuring residents receive the services they need while we continue rebuilding the council's finances.

"These debts are historic and the money was borrowed and invested many years ago. Nevertheless, we need to manage the financial situation that we have inherited, and this support will be a real boost as we continue that work."

The council statement adds: "The support is an important milestone in the council's journey towards financial sustainability, but it is not the end of the process. The council will continue to deliver its recovery strategy, reduce debt, transform services and strengthen its long-term financial resilience."