THE minister for local government has called on cash-strapped Thurrock Council to work with his team to explore potential long-term options to support the Council to financial sustainability.

Simon Hoare was responding to a third report (which can be read via this link) from commissioners Dr David Smith, Gavin Jones and Nicole Wood who have been put in charge of oversight on Thurrock's bid to claw its way back to viability after its disastrous gamble in financial markets where the Conservative administration lost hundreds of millions of pounds on failed investments.

In September 2022 the council admitted it was effectively bankrupt because of its mistakes and continuing cuts in government financial support.

That prompted intervention from the Department for Levelling Up, Housing and Committees which brought in the commissioners. 

In his letter, published today, Mr Hoare acknowledges progress has been made and says that the council is 'taking ownership' of its recovery.

However, he reflects the views of commissioners that 'while good progress is being made, the scale of the challenge facing Thurrock remains substantial'.

And he acknowledges that tough times lie ahead for the borough and recognises a request from the council for more support.

He says: "Difficult choices remain, including how to implement and deliver savings.

"In your report, you reference that it is impossible at this stage to conclude that 'Thurrock has a route to full financial sustainability by the end of the Direction period, without further Government support'.

"I ask that you continue to work with my officials to understand the council's debt and deficit position and to explore potential long-term options to support the council to financial sustainability."

A statement from Thurrock Council today (Thursday, 7 March) says: "The report is positive about the progress being made. It also highlights areas to focus on, including financial sustainability, organisational culture and governance. It makes clear that work needs to continue at pace and there is a long journey ahead."

Responding to the minister's letter, council leader Cllr Andrew Jefferies says: "The recognition of our progress is encouraging and we will continue to build on what has already been put in place. I remain focused on meeting the significant challenges that lie ahead on our council's improvement journey.

"We will continue to work together to drive forward with the changes needed to shape our recovery.

"Thurrock is a borough that will succeed and flourish. We want to be the energetic, hard-working and ambitious council local people need and deserve."

Mr Hoare has approved the council's request for more than £68million of government funding becasue it has set its budget.

The news came in the wake of last week's budget-setting meeting, council requested exceptional financial support as it fights a £1.3billion debt mountain accrued after a catalogue of bad investments.

Last week the council had its budget for 2024/25 approved by councillors, despite a rebellion from two Conservatives who were then expelled from the ruling group.

It was achieved be the sale of assets, the divestments of investments, a 7.99 per cent increase in council tax and £90million in cost cutting measures.

Mr Hoare, Minister for Local Government, said: "Government's view continues to be that councils requiring exceptional financial support, particularly where it is apparent that several concurrent years of support will be needed, should take all possible steps locally to manage their budget pressures and restore long[1]term financial sustainability.

"The Secretary of State has considered very carefully the council's position including the interest of local people in Thurrock, and the need to provide sufficient stability to the council and to make sure that service delivery, especially for the most vulnerable citizens, is not disrupted.

"With respect to the financial year 2024-25, the Secretary of State is minded to approve a capitalisation direction of a total not exceeding £68.6 million."