THE costs of recovering some of the money invested in failed 'gambles' by Thurrock Council has been described as' incredibly sober reading'

At a full meeting of the authority, Cllr Graham Snell, the portfolio holder for finance, HR and payroll unveiled the council's financial strategy to sell off a string of investments which have contributed to the near £1.5 billion debt that effectively bankrupted the authority.

He said: "Broadly the financial strategy is about recovering the council's financial position and focuses on just over a £1billion of divestments generating £150 million of capital receipts to pay down debt and reducing reliance on borrowing to fund the general fund capital programme.

"There is also ongoing work to save £18.2m for the revenue budget for each of the next two years and a further £13.65m for each of the following three years. These are very ambitious targets and might fluctuate depending on the situation."

Cllr Snell added: "The divestment encompasses 14 investments covering £1.035billion of original investment of which five major ones are currently in progress and we aim to have divested of or have underway 93 per cent of the council's investment portfolio by March 2024. The recovery of the seven per cent balance is currently being planned.

"Two of the divestments are in administration, Toucan and JCF and effectively out of the council's control."

Cllr John Kent, leader of the Labour group criticised a decision to invest 75 per cent of the money borrowed from other councils across the country on just two investments solar farm company Toucan Energy and the Just Loans Group

He said: "This report makes for incredibly sober reading and it shows the stark reality of the consequences of a bankrupt Conservative council. A debt of almost £1.5 billion meaning that 40 per cent of our revenue budget is spent on servicing that debt.

"That position is absolutely unsustainable. It means at least another five years of having to go cap in hand to Government each year to beg for exceptional support to set the budget

Cllr Kent added: "It's still scandalous that the Tories allowed so much borrowed money to be staked on just two bets. The cost of recovering these investments is also spiraling. We're now told that it's expected to be an eyewatering £56 million. While much of that money can be capitalised it will be another £10m pressure on our general fund."