Levelling up secretary Greg Clark, has announced measures to intervene in Thurrock Council due to its “serious financial situation”.
Clark has appointed Essex County Council as commissioner and best value inspector, giving the authority full control of the financial, governance and scrutiny functions of Thurrock Council and powers to mitigate any further risk to services.
The Department for Levelling Up, Housing and Communities said the intervention comes in response to grave concerns about the exceptional level of financial risk and debt incurred by the council.
Clark said: “Given the serious financial situation at Thurrock Council and its potential impact on local services, I believe it is necessary for government to intervene. I strongly believe that when a council gets into difficulties its local government, neighbours should be the preferred source of help in turning it around.
“I know that Essex County Council possesses the expertise and ability to help its local government neighbour. Working together, I believe the councils can deliver the improvements local people expect and deserve.”
Rob Gledhill, Leader of Thurrock Council, said the “political buck stops with me” and has resigned. He highlighted concerns regarding the council’s investments and subsequently its finances.
Thurrock Council will now work with Essex County Council to prepare an Improvement Plan within the first three months of intervention. The authority will also provide a Best Value Inspection Report to the secretary of state in the same timeframe.
Leader of Essex County Council, Cllr Kevin Bentley, said: “The secretary of state has clearly recognised our work in this field and now we stand ready to support our neighbours in Thurrock.
“Working alongside Thurrock colleagues and utilising Essex County Council’s strong financial expertise and performance, I hope that we can soon begin to see Thurrock Council take positive steps forward.”
In response to the government intervention, a Thurrock Council spokesperson said: “The council is treating this situation extremely seriously and has been working with the government in recent weeks, as well as independent financial and legal experts to fully understand how the situation has arisen and establish a comprehensive resolution plan to safeguard the council’s financial position.
“We are grateful to the government for the support they have given us and welcome the action to instigate intervention and provide additional assistance.
“The council will co-operate fully with the appointed commissioners to work to protect the interests of and services for the people of Thurrock.”
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