THURROCK Council's ongoing financial crisis and the adverse impact on borough residents was highlighted in the House of Commons this week.

East Thurrock MP James McMurdock took the opportunity to quiz Prime Minister Sir Keir Starmer during PM's questions.

Mr McMurdock highlighted a 'devastating triple whammy', saying residents had suffered a 50% rise in council tax, severely reduced public services, and a were paying the penalty for £1 billion in emergency loans borrowed by Thurrock Council.

Mr McMurdock, who appeared to exaggerate the tax rise imposed by the council since its financial collapse (locally imposed rises were 7.99 per cent in 2024 and 9.99 per cent inn2023) said: "The residents of my constituency in South Basildon and East Thurrock are facing a triple whammy of increased council tax of 50%, reduced public services, and borrowing on a billion pounds worth of emergency funding, which is 1% above base. 

"That 1% is approximately £10 million per year going to the Treasury—money that could be spent on frontline services in Thurrock. Will the Prime Minister commit to reducing that rate so the money can go where it belongs?"

In response, the Prime Minister acknowledged the issue, stating:

"I thank him for his question. The last government made life even more difficult for councils needing exceptional financial support by charging a premium on borrowing. 

"That was the wrong decision, which had a huge impact on vital services, and we will be taking a different approach. We are delivering, in real terms, an increase in core public government spending power, and that will benefit his constituents."

This week, Mr. McMurdock also wrote directly to the Chancellor of the Exchequer, urging a review of the 1% interest surcharge on Thurrock's borrowing from the Treasury's Public Works Loan Board. 

His letter outlined the 'unjust impact of this additional financial burden, which siphons approximately £8.5 million annually from Thurrock residents — funds that could otherwise be used to sustain essential services.'

Thurrock Council leader Cllr John Kent said that while he welcomed Mr McMurdock's concern, senior administrators at the council have been working for some time with the Department for Local Communities to look at ways of easing the debt burden. 

He said: "This is not a simplistic problem, it's a very complex and it is important to sort the rhetoric from the facts.

"Mr McMurdock is right that borough residents are paying the penalty for the failures of past administrations and it was not their fault.

"However, turning this around is not going to be a quick fix. 

"The council is working hard to recoup monies that were lost and that may be recoverable and legal action is being pursued. 

"In addition we continue to work with the government and are examining a range of options with regard to reducing the financial burden."