THE Government has confirmed that it will provide £200 million of debt relief support for Thurrock Council.
The support is part of a wider announcement on how Labour is taking direct action to clamp down on poor investments by councils and how Labour is protecting taxpayers from paying the price.
The £200 million is an unprecedented level of support and is in response to the £1.3bn of debt wracked up by the last Conservative administration between 2016 and 2023.
Under the Conservatives the council adopted a Commercial Investment Strategy which exposed Thurrock to increased risk; particularly through their investments with now disgraced businessman Liam Kavanagh. The Conservatives’ lack of transparency and oversight means that they failed to acknowledge or take action on the council’s growing debt and forced the council to declare bankruptcy in 2022.
Labour has, since taking control of the council in 2024, worked with the UK Government to build a long term strategy to bring down the debt and the council has now recovered over £660million of funding. Labour has also scrapped the Conservatives’ disastrous borrow to invest plan and reduced future risk to taxpayers’ money.
Labour has also backed an ongoing investigation by the Serious Fraud Office (SFO) and has delivered increased financial transparency with strengthened scrutiny and oversight so that the council is always accountable for its actions.
Thurrock Labour and local MP, Jen Craft, have welcomed the announcement after campaigning for support for Thurrock since 2023. And they are continuing to call for a full review into what went wrong under the Conservatives and who, if anyone, benefitted from taxpayers’ money as well as ensuring that those responsible are held to account.
Lynn Worrall, Labour Leader of Thurrock Council, said:
“I am delighted that our Labour Government has listened to our calls to help protect Thurrock residents from the financial problems created by the Conservatives as we move into a new council. It shows that Labour has got Thurrock’s back. We all know Thurrock Labour did not create this mess, and we have worked tirelessly over the last two years to get our council back on track.
“I am incredibly proud that since becoming Leader I have helped the council deliver £17.8m of savings in 25/26 with a further £13.9m identified for the coming year, all whilst protecting the services local people want and need, and keeping council tax the lowest in Essex. Our Children’s and Adults services are the envy of many councils and we have kept those standards high despite the failings of the previous Conservative council.
“I’m grateful to the Government for listening to us, and helping us be as strong as we can as we move into a new council. I know there’s still a lot to do and today’s announcement means we can continue to build on the progress already made under my leadership without the constant shadow of so much debt hanging over us.”
Jen Craft, Labour MP for Thurrock, said:
“This debt relief is a turning point for Thurrock.
“Since the Tories recklessly bankrupted our council, local families like mine have seen dramatic increases in council tax and vital services slashed.
“I’ve been calling for Thurrock’s debt to be written off, to put an end to our community paying the price for the failures of the past.
“Labour has listened and delivered. This financial support means we can finally build the strong council our area needs, so families receive the high-quality services they deserve.”
