THURROCK Council has defended its financial management saying the borough would have been worse off without the heavily criticised investments administrations had made over several years reports the Local Democracy Reporting Service.
Shane Hebb, councillor responsible for finance told cabinet members on Wednesday that recent stories about the council debt levels which currently stand at £1.4billion had been misunderstood.
The council has been criticised for a range of controversial investments which have now been curtailed by Government.
The council currently has a £34.3million budget shortfall. Job cuts and belt tightening across the council have still left about £4million to find.
However, Mr Hebb said the investments had brought in much needed revenue.
He said: “The investment approach has generated £115 million worth of income after £16 million worth of interest payments are deducted.
“Quite simply without the amount of £16million worth of interest there would have been no £115million brought in to pay for services
All 49 councillors voted three times in 2017, 2018 and 2019 to allow borrowings to increase. it was this administration that proposed the cuts to borrowing levels at the start of this year. The truth is Thurrock have benefited from an 11.5 and per cent return over this period from the approach.”
Mr Hebb said without the investments the council would be facing an extra £30million funding gap and reserves which stood at £8million when the administration started had now increased to £24million.
Mr Hebb added: “The investment strategy was universally backed by all the councils in the chamber.
This money has paid for services that residents rely on daily and has helped maintain the third lowest Band D council tax of any unitary authority.
“Thurrock finances are in better hands under this Conservative council versus the mess that Labour left. There remains now just £4million against a £34million plus gap to close. We will do all that is possible to protect the vulnerable, to protect our environment to keep it clean.
Mr Hebb added higher council tax would not be a “default” measure and cutting the council’s budget would remain a priority.
