Bankrupt authority considers 8% council tax rise

Thurrock Council leader Andrew Jefferies says he has "resisted pressure" to increase council tax by 10% in April

Thurrock Council’s Conservative administration is proposing increasing council tax by 8% from April.

The rise is two per cent less than the amount the government allowed the indebted local authority to increase it by this year.

Council leader Andrew Jefferies said “we have resisted pressure to increase council tax by 10% and this has only been possible because of the progress made by my administration".

Labour have previously said "council taxpayers will still be paying more and more for fewer and fewer services and vital community assets are set to be sold off".

Councillors will vote on the proposed 8% tax rise later this month

Thurrock Conservatives admitted that ministers - and the government-appointed commissioners who oversee the council - "urged" them to approve a 10% rise.

A government statement this week said councils "in the most severe financial failure should continue to take all reasonable local steps to support recovery including additional council tax increases".

Mr Jefferies said the sale of Toucan solar farms last month has "wiped over half a billion pounds from the council’s debt". Thurrock's debt was £1.5 billion.

'Raft of increases'

John Kent, leader of the Labour group on Thurrock Council, said: “The announcement that Thurrock Conservatives plan to impose another inflation busting council tax rise will come as a blow to many hard pushed Thurrock residents.

"The leader of the council appears to be selling this as good news.

"The fact is, it is coming on top of last year’s 10% council tax hike, the £20m worth of service cuts they are now searching for - and a raft of inflation busting increases to the council’s fees and charges.”

Most local authorities can increase council tax by 3% with an additional 2% for adult social care. Any rise above these amounts would have to put to a local referendum.

Last year Thurrock was allowed by the government to increase council tax by 10% in return for financial support covering a deficit of £636 million. The increase took place last April after it was backed by the Conservative administration.

Last year, Croydon councillors initially rejected a council tax rise of 15% that the government had allowed. But it was approved at a later meeting.

Thurrock will set its budget at full council later this month.