Political dexterity as council leader engineers upbeat moments from a tricky situation - is Port of Tilbury about to come to authority's rescue?

By EXCLUSIVE by Neil Speight

11th Jan 2024 | Local News

THURROCK Council leader Andrew Jefferies produced an evening of political dexterity when he led the authority's senior councillors through one of its most potentially challenging meetings last night (Wednesday, 10 January) in under 37 minutes.

He first appeared to produce a magic solution to concerns that the Tilbury-Gravesend ferry service would have to be scrapped because of Thurrock Council's financial incapacity – and then managed to brush aside fears of a 10 per cent council tax rise.

However, both courses of action could still put him on a collision course with both Kent County Council and the government.

Yesterday Thurrock Nub News was among many media platforms that reported on borough MP Dame Jackie Doyle-Price's urgent questions about the ferry service at Prime Minister's Question Time in the Commons and a consultation commissioned by Kent County Council (KCC) – which had expressly said Thurrock Council had not met its agreed contribution for the ferry subsidy.

Launching its consultation, Kent Council's cabinet member for highways and transport, Cllr Neil Baker, said: "The current contract for our subsidy is due to end in March 2024.

"As part of negotiations with the operator around a recent contract extension, Thurrock Council, which is in special financial measures, has advised KCC it has concerns about its ability to fund the service in the longer term and currently, the subsidy is being funded exclusively by KCC.

"Based on current costs, KCC's budget allows for a subsidy of £55k per annum to support the ferry but without further external funding, and accounting for the likely cost of a new contract, KCC would likely have to allocate over £200k a year to sustain the service which would be an additional pressure to a fully allocated budget.

"Due to the financial pressures KCC is facing, it is unclear whether KCC could commit to funding the service in its entirety moving forward and the funding that the council has historically made available would not be enough on its own to sustain the service.

Tilbury ferry.

"Due to the updated financial position of the funding partnership between KCC and Thurrock Council, we are having to look again at our arrangement to subsidise this service."

Thurrock pulled its funding last year. Senior councillors were due to debate the issue in public at last November's cabinet meeting but it was pulled from the agenda and no public pronouncement, consultation or discussion has been undertaken by Thurrock Council.

Evidence of the borough authority's withdrawal of funding came in an early December statement by Cllr Baker, which said: "We understand the important role this ferry service has in serving both Gravesend and Tilbury.

"As KCC is now the sole authority subsidising this service, we have a responsibility to the Kent council taxpayer to ensure we are spending money wisely."

So the statement last evening by Cllr Jefferies came somewhat out of the blue – not least because his authority's withdrawal of funding had prompted Prime Minister Rishi Sunak, in response to Dame Doyle-Prices questions about the future of funding, to say he would 'encourage' local councils to 'consider the importance of cross river transport'.

Speaking to the cabinet last evening Cllr Jefferies appeared to bend to that encouragement by announcing: "I'd like to thank our member of Parliament who asked a question in the House today and got the support of the Prime Minister

"What is actually happening is that I spoke to the Kent Council leader this evening.

"We both agreed that officers will work together on both sides to come up with a solution to the ferry service to make sure that it continues without any redress to public funds.

"The consultation that Kent are doing will continue and people are welcome to comment, but we are not withdrawing the funding.

Political magic as council leader Andrew Jefferies pulled not one, but two upbeat messages out of the hat at cabinet.

"That is not our position and we really do want to find a working solution that provides people with a ferry service between Tilbury and Gravesend."

Kent Council have yet to respond to the apparent overnight change of situation.

However, Thurrock Nubs News may have found the cause of Cllr Jefferies' optimism.

We contacted the Port of Tilbury whose spokesperson exclusively gave us this message: "The Tilbury-Gravesend Ferry is an important transport link for both communities and many of our port employees use the service.

"The Port of Tilbury has supported the subsidy of the ferry in the past and we are currently exploring options with Thurrock Council."

With the ferry issue, at least temporarily put to bed, in a report about the council's planned council tax increase finance portfolio holder Cllr Graham Snell pulled another rabbit out of the political hat by saying the council would not be levying the expected 10 per council tax increase.

That figure was effectively put on the table in what appeared to be a government instruction from government minister Michael Gove to struggling councils to cut their cloth as sharply as possible to make the maximum impact on their debt.

As reported by Thurrock Nub News in December, Levelling Up Secretary Michael Gove said Thurrock could make use of "additional flexibilities" and it can make an eight per cent increase without holding a referendum. Authorities that wish a total increase about five per cent are, by law, supposed to go to a vote of residents to approve it – but the government has to power to waive that.

By issuing that waiver without even being asked for it, most political observers took it as an 'instruction' from the government, rather than an option.

Michael Gove

Mr Gove said: "Councils in significant financial failure can make use of any additional flexibilities provided to support their financial recovery and going forward the government will consider all reasonable steps to protect both national and local taxpayers and ensure councils are acting responsibly."

Mr Gove's granting of the right to raise tax up to ten per cent was expected to lead to the council setting a fee for its own levy of the full eight per cent, which will be added to a 'ring-fenced' two per cent adult social care increase.

Now Cllr Snell, says that won't be happening, prompting Cllr Jefferies to add: "We are not imposing or considering a 10 per cent increase in council tax which should give some reassurance to residents."

Whether the government shares that 'reassurance' remains to be seen.

Last night councillors declined to go into any substantive detail about any of the proposed savings the authority has to make and the whole agenda item took a fraction longer than 11 minutes to be pushed through. A budget will need to be put together in time for the full council on Wednesday, 28 February.

     

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