{"id":384,"date":"2023-02-03T14:31:30","date_gmt":"2023-02-03T14:31:30","guid":{"rendered":"https:\/\/260web.com\/news\/bankrupt-thurrock-council-asks-for-636m-bailout-and-tax-hike\/"},"modified":"2023-02-03T14:31:30","modified_gmt":"2023-02-03T14:31:30","slug":"bankrupt-thurrock-council-asks-for-636m-bailout-and-tax-hike","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/bankrupt-thurrock-council-asks-for-636m-bailout-and-tax-hike\/","title":{"rendered":"Bankrupt Thurrock Council asks for \u00a3636m bailout and tax hike"},"content":{"rendered":"

Bankrupt Thurrock Council asks for \u00a3636m bailout and tax hike<\/p>\n

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\"Thurrock<\/picture><\/span>Stuart Woodward\/BBC<\/span><\/div>\n<\/figure>\n<\/div>\n
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By Simon Dedman<\/div>\n
BBC Essex political reporter<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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A council that is effectively bankrupt is in talks with government to borrow up to \u00a3636m to help balance its books.<\/b><\/p>\n<\/div>\n<\/div>\n

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Thurrock Council in Essex has a \u00a31.5bn debt following a series of high-risk investments.<\/p>\n<\/div>\n<\/div>\n

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The Conservative-run unitary local authority is also due to find out whether Westminster will allow it to increase council tax by more than 5%.<\/p>\n<\/div>\n<\/div>\n

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The Labour opposition leader said the government loan would only serve as a “sticking plaster”.<\/p>\n<\/div>\n<\/div>\n

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Thurrock has asked for an initial \u00a3182.5m from the Treasury to prop up its budget for 2023-24.<\/p>\n<\/div>\n<\/div>\n

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The loaned funds would end up accounting for 57% of its spending.<\/p>\n<\/div>\n<\/div>\n

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The council however hoped to recoup at least \u00a3475m from the solar farms it started purchasing in 2018.<\/p>\n<\/div>\n<\/div>\n

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Last year, the Conservative government’s Chancellor of the Exchequer, Jeremy Hunt, said councils could only increase their share of tax on residents by 4.99%, but an exception was expected to be made for Thurrock.<\/p>\n<\/div>\n<\/div>\n

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The council’s cabinet member for finance, Graham Snell, said: “There’s no point beating around the bush with that; we would be prepared to go above the 5% should the government allow us to do that.”<\/p>\n<\/div>\n<\/div>\n

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Thurrock has the largest funding deficit of any local authority in England.<\/p>\n<\/div>\n<\/div>\n

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The \u00a3636m bailout figure being discussed with government was revealed at an overview and scrutiny committee meeting at Thurrock on Thursday.<\/p>\n<\/div>\n<\/div>\n

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Labour opposition leader John Kent said: “This is only forestalling the day when you actually have to do something decisive to solve this problem.<\/p>\n<\/div>\n<\/div>\n

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“These sticking plasters just won’t do.”<\/p>\n<\/div>\n<\/div>\n

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Mr Kent said he was worried the council would sell its assets, such as scout halls and community halls, and he asked that they be transferred to community ownership.<\/p>\n<\/div>\n<\/div>\n

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A decision is yet to be made over the ownership of the Thameside complex in Grays, which includes a 300-seat theatre, museum, community space and library.<\/p>\n<\/div>\n<\/div>\n

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Find BBC News: East of England on <\/i>Facebook, <\/i>Instagram and <\/i>Twitter. If you have a story suggestion email <\/i>eastofenglandnews@bbc.co.uk<\/p>\n<\/div>\n<\/div>\n

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More on this story<\/h2>\n<\/div>\n