Thurrock Council could lose control of hiring and firing senior staff

The government said Thurrock Council must take steps over the Thames Freeport, which includes the Port of Tilbury

The government has said it may strip more powers away from a local authority that is effectively bankrupt.

Essex County Council was appointed as commissioner to oversee financial decisions at Tory-run Thurrock Council, which has a £1.5bn debt.

Conservative minister Lee Rowley has now said the government was "minded" to give the commissioner greater powers because of "systemic" weaknesses.

Thurrock Council said a recovery plan was already in place.

The new powers given to the commissioner could include the hiring and firing of the unitary council's most senior staff.

Thurrock Council issued a S114 notice of "financial distress" in December and asked the government for help

The county council provided a first report and "update letter" for the government last month, which contained key findings and recommendations.

Mr Rowley, the minister for local government and building safety, said: "The commissioner report and update letter lay bare the profound weaknesses in this authority's financial function, which has resulted in unmanageable budget gaps in this financial year and in future years.

"This situation is primarily a result of the failure of the authority's commercial investment strategy."

The government suggested Thurrock Council lose its power over the appointment, suspension and sacking of senior staff

In a local government update statement, he said there was a "lack of capacity" at Thurrock and added: "[The] update letter posits that the authority's financial failings are a manifestation of deeper systemic weakness in the historic and recent running of the council."

He said Secretary of State for Levelling Up, Housing and Communities, Michael Gove, was minded to increase Essex County Council's powers associated with:

• Strategic decision making

• Thurrock's operating model

• The redesign of council services

• The appointment, suspension and sacking of staff in the council's top three tiers

Mr Rowley said it planned to recommend that Thurrock implement an enhanced recovery plan and "takes steps" over its role as the accountable body for the Thames Freeport, which includes the London Gateway near Corringham and the Port of Tilbury.

Thurrock became a unitary authority in 1998, meaning it provides all council services in its district, including those previously provided by Essex County Council, such as social services, waste disposal and libraries.

In late 2018, the council started to significantly increase its investment in a portfolio of solar farms

Evidence, seen by the BBC, revealed the council was warned in 2018 about "unprecedented" risks being taken with public money.

Thurrock issued a Section 114 notice in December, effectively declaring itself bankrupt, admitting it had a £469m deficit on top of the £1.5bn debt.

'Better place'

The government invited Thurrock residents to make representations ahead of Mr Gove's proposals - due by 7 February.

A best value report from the commissioner was expected by 17 February.

Thurrock's acting chief executive, Ian Wake, said the council was in a "much better place" than at the start of the intervention and that a recovery plan was in place.

Conservative council leader Mark Coxshall said he was keen residents have their say on the proposals and help shape "the future" of the area.