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Government rejects public inquiry into Thurrock failings

A public inquiry into the bankruptcy of Thurrock Council – which might have dug deeper into the overall financial state, oversight and funding of local government – will not take place.

Local government minister Simon Hoare has written to Thurrock following a local petition and council motion asking for a public inquiry to state that the government’s “ongoing intervention and Best Value Inspection provide the best approach to understanding and tackling the issues Thurrock Council face”.

While the Levelling Up, Housing and Communities Committee has conducted parliamentary inquiries and produced a report on ‘Financial distress in local authorities’, it would have been hoped by some in the sector that a public inquiry might have gone further in addressing issues of government oversight and the impact of national policies on local authorities, as well as providing information on why more councils are in the position of issuing, or facing issuing, section 114 notices.

But Hoare said in his letter: “The commissioner model in place remains the best and fastest way forward in providing a framework for continued progress.

“It is my view a statutory public inquiry into Thurrock Council would not provide sufficient additionality or provide further understanding into the historical failings or management of the council that is not being achieved through statutory intervention.”

Hoare concluded the letter by promising that the government would “continue to closely monitor financial and commercial risk in the sector and take action where necessary”.

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The government has launched a consultation on its proposed business rates reset, potentially leading to a significant redistribution of council funding.

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