Tory Run Thurrock Council Faces Investigation Into Extraordinary Levels Of Debt Local Government

Communities secretary Greg Clark said government-appointed commissioners would take full control of Thurrock’s finances over fears of “the extraordinary level of financial risk and debt the council is taking on”. Thurrock, in the ceremonial county of Essex, has become one of the most indebted and highly leveraged of all English local authorities after borrowing £1.5bn in recent years, including more than £900m in short-term loans from other councils, to enable investment in a range of solar farm businesses. Clarke sidestepped normal protocols on Friday when he rushed to appoint external commissioners to manage the council’s finances, citing a “pressing case for urgent government action to protect the interests of Thurrock residents and taxpayers”. “Given the serious financial situation in Thurrock council and the potential impact on local services, I believe it is necessary for the Government to step in,” he said. An explanatory memorandum released by the Department for Leveling said: “The scale and nature of the issues are emerging very quickly and the Secretary of State is concerned that further evidence of failure could come to light very quickly and requires immediate action.” While the government has revealed few precise details of its concerns, it is understood there are fears about Thurrock’s ability to repay its borrowing should investments turn sour, as well as doubts about the council’s ability to cope with potential losses that estimated by some at £200 million. A recent investigation by the Bureau of Investigative Journalism found that hundreds of millions borrowed by Thurrock were actually loaned to companies owned by multi-millionaire businessman Liam Kavanagh to invest in 53 solar farms. The council has faced persistent complaints over the past two years that it had kept councilors and the public in the dark about its investments, with opposition members claiming they have been “misled and misled” about the deals. Thurrock council leader Rob Gledhill resigned on Friday following the government’s announcement, saying: “It has become clear over the last few months that the situation regarding the council’s investment, and subsequently its finances, was not as stated. As leader of the council, the political sum stops with me.” John Kent, the leader of Thurrock Council’s Labor group, said the group had been repeatedly “petrified, ignored, falsely reassured, lied to, misled and misled” by officials and cabinet members when it tried to get information about the borrowing and the council’s investments. strategy. “For a long time, we have had no confidence in the honesty or integrity of the leadership of Cllr Gledhill or his cabinet colleagues. It is fitting that Gledhill has finally done the right thing and resigned. But there are others, who were in Gledhill’s cabinet throughout his disastrous leadership, who share collective responsibility and are equally responsible – they must also take their positions into account.” He added: “Now is the time for honesty and candor, the people of Thurrock have a right to know what is going on and where the missing millions are.” Thurrock is the latest council to face financial difficulties after borrowing huge sums in the hope of generating income to offset huge budget gaps created by government cuts. Croydon and Slough councils have both effectively declared bankruptcy, partly due to problems caused by over-leveraging. The National Audit Office warned two years ago that many English councils were financially exposed when they embarked on a £6.6m borrowing spree to invest mainly in commercial property. Ministers have become increasingly nervous about the massive scale of loans taken out by various councils. Neighboring Essex County Council has been appointed by Clarke to take full control of Thurrock’s finances. It will also carry out a review of Thurrock’s governance, control and audit functions and prepare an improvement plan. In a statement Thurrock Council said:[We are] takes this situation extremely seriously and has been working with the government over the last few weeks, as well as with independent financial and legal experts, to fully understand how the situation has arisen and create a comprehensive resolution plan to safeguard the council’s financial position.”

title: “Tory Run Thurrock Council Faces Investigation Into Extraordinary Levels Of Debt Local Government Klmat” ShowToc: true date: “2022-11-27” author: “Larry Mayfield”

Communities secretary Greg Clark said government-appointed commissioners would take full control of Thurrock’s finances over fears of “the extraordinary level of financial risk and debt the council is taking on”. Thurrock, in the ceremonial county of Essex, has become one of the most indebted and highly leveraged of all English local authorities after borrowing £1.5bn in recent years, including more than £900m in short-term loans from other councils, to enable investment in a range of solar farm businesses. Clarke sidestepped normal protocols on Friday when he rushed to appoint external commissioners to manage the council’s finances, citing a “pressing case for urgent government action to protect the interests of Thurrock residents and taxpayers”. “Given the serious financial situation in Thurrock council and the potential impact on local services, I believe it is necessary for the Government to step in,” he said. An explanatory memorandum released by the Department for Leveling said: “The scale and nature of the issues are emerging very quickly and the Secretary of State is concerned that further evidence of failure could come to light very quickly and requires immediate action.” While the government has revealed few precise details of its concerns, it is understood there are fears about Thurrock’s ability to repay its borrowing should investments turn sour, as well as doubts about the council’s ability to cope with potential losses that estimated by some at £200 million. A recent investigation by the Bureau of Investigative Journalism found that hundreds of millions borrowed by Thurrock were actually loaned to companies owned by multi-millionaire businessman Liam Kavanagh to invest in 53 solar farms. The council has faced persistent complaints over the past two years that it had kept councilors and the public in the dark about its investments, with opposition members claiming they have been “misled and misled” about the deals. Thurrock council leader Rob Gledhill resigned on Friday following the government’s announcement, saying: “It has become clear over the last few months that the situation regarding the council’s investment, and subsequently its finances, was not as stated. As leader of the council, the political sum stops with me.” John Kent, the leader of Thurrock Council’s Labor group, said the group had been repeatedly “petrified, ignored, falsely reassured, lied to, misled and misled” by officials and cabinet members when it tried to get information about the borrowing and the council’s investments. strategy. “For a long time, we have had no confidence in the honesty or integrity of the leadership of Cllr Gledhill or his cabinet colleagues. It is fitting that Gledhill has finally done the right thing and resigned. But there are others, who were in Gledhill’s cabinet throughout his disastrous leadership, who share collective responsibility and are equally responsible – they must also take their positions into account.” He added: “Now is the time for honesty and candor, the people of Thurrock have a right to know what is going on and where the missing millions are.” Thurrock is the latest council to face financial difficulties after borrowing huge sums in the hope of generating income to offset huge budget gaps created by government cuts. Croydon and Slough councils have both effectively declared bankruptcy, partly due to problems caused by over-leveraging. The National Audit Office warned two years ago that many English councils were financially exposed when they embarked on a £6.6m borrowing spree to invest mainly in commercial property. Ministers have become increasingly nervous about the massive scale of loans taken out by various councils. Neighboring Essex County Council has been appointed by Clarke to take full control of Thurrock’s finances. It will also carry out a review of Thurrock’s governance, control and audit functions and prepare an improvement plan. In a statement Thurrock Council said:[We are] takes this situation extremely seriously and has been working with the government over the last few weeks, as well as with independent financial and legal experts, to fully understand how the situation has arisen and create a comprehensive resolution plan to safeguard the council’s financial position.”

title: “Tory Run Thurrock Council Faces Investigation Into Extraordinary Levels Of Debt Local Government Klmat” ShowToc: true date: “2022-12-08” author: “Ivan Graham”

Communities secretary Greg Clark said government-appointed commissioners would take full control of Thurrock’s finances over fears of “the extraordinary level of financial risk and debt the council is taking on”. Thurrock, in the ceremonial county of Essex, has become one of the most indebted and highly leveraged of all English local authorities after borrowing £1.5bn in recent years, including more than £900m in short-term loans from other councils, to enable investment in a range of solar farm businesses. Clarke sidestepped normal protocols on Friday when he rushed to appoint external commissioners to manage the council’s finances, citing a “pressing case for urgent government action to protect the interests of Thurrock residents and taxpayers”. “Given the serious financial situation in Thurrock council and the potential impact on local services, I believe it is necessary for the Government to step in,” he said. An explanatory memorandum released by the Department for Leveling said: “The scale and nature of the issues are emerging very quickly and the Secretary of State is concerned that further evidence of failure could come to light very quickly and requires immediate action.” While the government has revealed few precise details of its concerns, it is understood there are fears about Thurrock’s ability to repay its borrowing should investments turn sour, as well as doubts about the council’s ability to cope with potential losses that estimated by some at £200 million. A recent investigation by the Bureau of Investigative Journalism found that hundreds of millions borrowed by Thurrock were actually loaned to companies owned by multi-millionaire businessman Liam Kavanagh to invest in 53 solar farms. The council has faced persistent complaints over the past two years that it had kept councilors and the public in the dark about its investments, with opposition members claiming they have been “misled and misled” about the deals. Thurrock council leader Rob Gledhill resigned on Friday following the government’s announcement, saying: “It has become clear over the last few months that the situation regarding the council’s investment, and subsequently its finances, was not as stated. As leader of the council, the political sum stops with me.” John Kent, the leader of Thurrock Council’s Labor group, said the group had been repeatedly “petrified, ignored, falsely reassured, lied to, misled and misled” by officials and cabinet members when it tried to get information about the borrowing and the council’s investments. strategy. “For a long time, we have had no confidence in the honesty or integrity of the leadership of Cllr Gledhill or his cabinet colleagues. It is fitting that Gledhill has finally done the right thing and resigned. But there are others, who were in Gledhill’s cabinet throughout his disastrous leadership, who share collective responsibility and are equally responsible – they must also take their positions into account.” He added: “Now is the time for honesty and candor, the people of Thurrock have a right to know what is going on and where the missing millions are.” Thurrock is the latest council to face financial difficulties after borrowing huge sums in the hope of generating income to offset huge budget gaps created by government cuts. Croydon and Slough councils have both effectively declared bankruptcy, partly due to problems caused by over-leveraging. The National Audit Office warned two years ago that many English councils were financially exposed when they embarked on a £6.6m borrowing spree to invest mainly in commercial property. Ministers have become increasingly nervous about the massive scale of loans taken out by various councils. Neighboring Essex County Council has been appointed by Clarke to take full control of Thurrock’s finances. It will also carry out a review of Thurrock’s governance, control and audit functions and prepare an improvement plan. In a statement Thurrock Council said:[We are] takes this situation extremely seriously and has been working with the government over the last few weeks, as well as with independent financial and legal experts, to fully understand how the situation has arisen and create a comprehensive resolution plan to safeguard the council’s financial position.”

title: “Tory Run Thurrock Council Faces Investigation Into Extraordinary Levels Of Debt Local Government Klmat” ShowToc: true date: “2022-12-17” author: “Gloria Williams”

Communities secretary Greg Clark said government-appointed commissioners would take full control of Thurrock’s finances over fears of “the extraordinary level of financial risk and debt the council is taking on”. Thurrock, in the ceremonial county of Essex, has become one of the most indebted and highly leveraged of all English local authorities after borrowing £1.5bn in recent years, including more than £900m in short-term loans from other councils, to enable investment in a range of solar farm businesses. Clarke sidestepped normal protocols on Friday when he rushed to appoint external commissioners to manage the council’s finances, citing a “pressing case for urgent government action to protect the interests of Thurrock residents and taxpayers”. “Given the serious financial situation in Thurrock council and the potential impact on local services, I believe it is necessary for the Government to step in,” he said. An explanatory memorandum released by the Department for Leveling said: “The scale and nature of the issues are emerging very quickly and the Secretary of State is concerned that further evidence of failure could come to light very quickly and requires immediate action.” While the government has revealed few precise details of its concerns, it is understood there are fears about Thurrock’s ability to repay its borrowing should investments turn sour, as well as doubts about the council’s ability to cope with potential losses that estimated by some at £200 million. A recent investigation by the Bureau of Investigative Journalism found that hundreds of millions borrowed by Thurrock were actually loaned to companies owned by multi-millionaire businessman Liam Kavanagh to invest in 53 solar farms. The council has faced persistent complaints over the past two years that it had kept councilors and the public in the dark about its investments, with opposition members claiming they have been “misled and misled” about the deals. Thurrock council leader Rob Gledhill resigned on Friday following the government’s announcement, saying: “It has become clear over the last few months that the situation regarding the council’s investment, and subsequently its finances, was not as stated. As leader of the council, the political sum stops with me.” John Kent, the leader of Thurrock Council’s Labor group, said the group had been repeatedly “petrified, ignored, falsely reassured, lied to, misled and misled” by officials and cabinet members when it tried to get information about the borrowing and the council’s investments. strategy. “For a long time, we have had no confidence in the honesty or integrity of the leadership of Cllr Gledhill or his cabinet colleagues. It is fitting that Gledhill has finally done the right thing and resigned. But there are others, who were in Gledhill’s cabinet throughout his disastrous leadership, who share collective responsibility and are equally responsible – they must also take their positions into account.” He added: “Now is the time for honesty and candor, the people of Thurrock have a right to know what is going on and where the missing millions are.” Thurrock is the latest council to face financial difficulties after borrowing huge sums in the hope of generating income to offset huge budget gaps created by government cuts. Croydon and Slough councils have both effectively declared bankruptcy, partly due to problems caused by over-leveraging. The National Audit Office warned two years ago that many English councils were financially exposed when they embarked on a £6.6m borrowing spree to invest mainly in commercial property. Ministers have become increasingly nervous about the massive scale of loans taken out by various councils. Neighboring Essex County Council has been appointed by Clarke to take full control of Thurrock’s finances. It will also carry out a review of Thurrock’s governance, control and audit functions and prepare an improvement plan. In a statement Thurrock Council said:[We are] takes this situation extremely seriously and has been working with the government over the last few weeks, as well as with independent financial and legal experts, to fully understand how the situation has arisen and create a comprehensive resolution plan to safeguard the council’s financial position.”