Debt-ridden council owes £10m to local authority

Rob Gledhill resigned as Thurrock Council's leader last month

A local authority "expects" its £10m loan to a council with debts of £1bn to be paid back in full and on time.

Buckinghamshire Council loaned the money to its fellow Conservative-run Thurrock Council in Essex in January.

A three-year investigation by the Bureau of Investigative Journalism revealed debt-ridden Thurrock owed large sums of money it had borrowed for investments.

Earlir this month, the government appointed commissioners to intervene with Thurrock's finances.

The local government minister said this was due to its "exceptional high level of financial risk and debt" around the investments Thurrock had made in a solar farm company.

Thurrock's debts totalled £1.5bn, the Local Democracy Reporting Service said.

'Strict safeguards'

The government intervention led to Thurrock's Conservative leader, Rob Gledhill, resigning on 2 September.

Earlier this week, it was revealed Thurrock had borrowed £11m from three district councils in Essex.

Now, Buckinghamshire Council's John Chilver, Conservative cabinet member for affordable housing and resources, said his council "expects " its loan to be repaid by the deadline date of 6 January 2023.

"There has never been a default on inter-authority borrowing," he said.

"Loans of this nature form a standard part of treasury management for most local authorities. 

"Strict safeguards are in place, and we closely monitor the situation to ensure no risks are taken with council funds."

Thurrock Council has been approached for comment.