Bankrupt council will not raise tax by 10% - leader

Thurrock Council was declared declared effectively bankrupt after a series of failed investments in solar farms left it with debts of about £1.5bn

A cash-strapped Essex council has said it will not increase council tax by 10% in April.

Thurrock Council was declared effectively bankrupt after a series of failed investments in solar farms left it with debts of about £1.5bn.

Levelling Up Secretary Michael Gove gave it the power to increase council tax beyond the 5% cap for most local authorities given the council’s financial position. It increased council tax by 10% last April.

Conservative council leader Andrew Jefferies said “we’ve decided we don’t want to go for the full ten percent" but would not be drawn on what the tax rise might be and if it would be between 5-10%.

Thurrock council leader Andrew Jefferies says the final council tax figure will be discussed with his Conservative group and the opposition

Mr Jefferies told the BBC after Wednesday night's cabinet meeting “we haven’t yet decided on a final figure” and it would be discussed within his Conservative group and the opposition.

Thurrock, Croydon and Slough are being overseen by commissioners and were given extra council tax raising powers in 2023.

This year Thurrock, Slough and Woking councils were told they could increase core council tax by 8-10% and also an extra 2% specifically for adult social care.

Asked if the government would allow Thurrock Council to increase council tax by less than 10%, Mr Jefferies said if a balanced budget was presented he was "reasonably confident" the authority would still get the additional funding.

"Yes, we will need to go to the government to ask for funding and I’m fully prepared to do that with a council tax rise that I think is appropriate for Thurrock and hopefully ministers will agree with that," he added.