Chief executive of Thurrock Council quits over £469m black hole

Lyn Carpenter has resigned from her post as chief executive of Thurrock Council, which last month reported a £469m gap in its finances

The chief executive of a council with a £469m funding black hole this financial year has resigned.

Conservative leader of Thurrock Council, Mark Coxshall, announced the departure of Lyn Carpenter at a cabinet meeting.

He told councillors he received a letter of resignation on Monday which he "accepted with immediate effect".

The £469m shortfall is three times its annual budget, and £275m of taxpayers' money will be lost as a result.

Mr Coxshall told the meeting he would recruit a new substantive chief executive in the new year.

At the meeting he described the financial position of the council as "grim".

Ms Carpenter has been on extended leave since September when the government appointed commissioners to oversee the finances and investigate what has gone on at the authority.

• Shortfall council to declare financial distress

• Council set to borrow nearly £850m to repay debts

Finance director Sean Clark was suspended and the then council leader and finance cabinet member resigned in September.

Thurrock Council announced it had lost £275m from investments it made largely in solar energy.

It borrowed hundreds of millions of pounds from other councils to invest - and now has a debt of £1.5bn.

It has had to request exceptional financial support from the government.

Interim finance director Jonathan Wilson said the council will issue an section 114 notice before Christmas formally declaring that the council cannot balance its books.