Thurrock Council’s debt position is expected to rise to £1.1bn over the next year, according to a new report.
Local government minister Jim McMahon wrote to the council leader saying “improvements to date remain fragile” and that there were still “substantial areas in which Thurrock Council still needs to improve”.
The government plans to extend its intervention, where appointed commissioners oversee the effectively bankrupt local authority, until 30 April 2028.
Lynn Worrall, who became leader of Thurrock Council last month, said: “A lot has been done, but we have much, much more to do.”
The government said it was “not satisfied that the pace or scale of the council’s response is proportionate to the issues it faces and has decided that Thurrock requires immediate urgent government action”.
The commissioners’ latest report published on Thursday stated there were “too many areas of fragility in the council’s recovery and still some major areas of work [are] yet to be done”.
The report said:
- A £41m budget gap which would require “ambitious savings” of 20% of the council’s spending
- Debt was around £800m but was estimated to rise to £1.1bn by the end of 2025/26
- A new council operating model “should be the catalyst for an ambitious transformation plan”
- Improving culture at the council was “an area of work that still seems underdeveloped”.
The commissioners said there had been areas of improvement since Thurrock was placed in special measures in 2022.
They said the administration “continues to own the recovery agenda and is taking steps to reengage with its communities” – and relationships between senior politicians and officers has improved.
Worrall said: “Thurrock Council is getting better.
“Children’s services have been rated as outstanding by Ofsted and our new Corporate Plan sets out a clear direction for the future, which we will be held accountable to.”
Whilst McMahon said Thurrock has “made significant progress”, the minister told parliament the council has not “demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement”.
The government has “indicated” it will provide financial support in 2026/27 for Thurrock to manage its debt.