The interim director of finance at Thurrock Council has warned that a section 114 notice will “inevitably” have to be issued before Christmas due to the authority’s “grave” financial position.
At a Corporate Overview and Scrutiny Committee meeting, Jonathan Wilson outlined Thurrock’s £469.6m funding gap for 2022/23 and a further £184.4m budget deficit for the following year. These predictions first came to light in late November.
He highlighted that the council’s budget gap for this year is “almost entirely related to investment-related balances” and that the authority has “limited mitigation” to balance its budget this year.
Wilson said: “This is a grave position. What that means for the council is we will request exceptional financial support from the government. That conversation is ongoing.
“And we will inevitably issue a section 114 notice and that will be before Christmas, almost certainly.”
Wilson also outlined that further actions will have to be taken to improve Thurrock’s financial position and reduce its debt, such as “necessary divestment” from commercial investments.
This comes as the government announced measures to intervene in Thurrock following concerns about the level of financial risk and £1bn debt incurred by the council. The Department for Levelling Up, Housing and Communities appointed Essex County Council as commissioner and best value inspector in September.
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