JAMES McMurdock, Member of Parliament for South Basildon and East Thurrock, has called on the Chancellor of the Exchequer to address the punishing impact of Treasury loan terms on Thurrock residents, following the local council’s financial scandal.
In a letter to Chancellor Rachel Reeves, MP McMurdock highlighted the severe repercussions of Thurrock Council’s £1.5 billion debt, accrued due to an investment scandal. The Council now manages £887 million in debt, with £861 million borrowed from the Treasury, imposing a 1% interest rate above the base rate—a rate MP McMurdock describes as “morally and practically objectionable.”
Thurrock residents are already facing significant tax increases. Council Tax for a Band D property has risen by more than 53% in just four years, reaching an unsustainable £2,040.66 by 2024/25. McMurdock warns that such burdens are untenable and that residents should not have to pay the price for the failures of local governance.
In his letter, MP McMurdock called on the Chancellor to remove the 1% surplus interest charge, which he argues unfairly profits the national government at the expense of regional taxpayers. He estimates that eliminating this surplus rate would return approximately £8.5 million annually to the community—funds urgently needed to sustain essential services.
“Members of the public should be shielded from the failures of their officials,” McMurdock stated. “By removing this interest charge, the Treasury would be taking a necessary step towards protecting Thurrock’s residents from further hardship.”
The MP hopes that the Chancellor will give urgent consideration to this issue and adjust the loan terms to ease the financial burden on Thurrock’s residents.
