Council votes for public inquiry into 'bankruptcy'

Councillors in the Thurrock Council chamber voting with their hands upImage source, Simon Dedman/BBC
Image caption,

A previous inquiry request was rejected by the Conservative government in April, despite votes from 1,500 residents to call one

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Councillors have voted in favour of calling for a public inquiry into how a local authority amassed a £1.5bn debt.

The motion brought to Thurrock Council, in Essex, passed almost unanimously and was backed by Labour and most Conservatives on Thursday evening.

A previous inquiry request was rejected by the Conservative government in April, despite votes from 1,500 residents to call one.

Labour council leader John Kent said the government had been "oblivious" to the borrowing Thurrock was making.

A public inquiry is a major investigation with the power to call people to give evidence, but the final decision to hold one is held by ministers.

Thurrock Council accrued its extensive debt after a series of failed investments in solar farms.

Image source, Stuart Woodward/BBC
Image caption,

Thurrock Council paid a significant amount of money on interest accrued from its debt last year

Independent councillor Neil Speight, who brought the motion for a public inquiry, told Thursday's meeting that residents "deserve answers".

"When is someone going to be held accountable?" he added.

Kent revealed the council paid more in interest on the debt than for all its services combined last year.

However, Conservative councillor Barry Johnson warned an inquiry could "cost hundreds of thousands of pounds" and would not bring "any other financial income back to the council".

The previous call for a public inquiry, earlier this year, was dismissed by the Conservative government amid a best value inspection of the council.

A report from the inspection found "systemic weaknesses" and a "dereliction" in leadership at the council led to borrowing of £1.5bn.

Kent said if the Labour government rejected the latest inquiry request, a select committee investigation by MPs could be another option.

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