Bankrupt Thurrock Council hopes to raise £1bn after solar farm sale

Earlier this year, Thurrock Council increased the tax it collects from residents by 9.99%

A council that is effectively bankrupt says it hopes to recoup about £1bn by selling off its investments.

Thurrock Council was left with debts of about £1.5bn following a series of failed investments in solar farms.

On Wednesday night the council met to discuss its plans to sell off investments and assets.

Council leader Andrew Jefferies said: "There's a big programme of selling off the previous investments and they are going through as we speak."

As well as selling off investments, which includes interests in solar farms, the council is looking to sell off various plots of land it owns around Thurrock. It also increased council tax by 9.99% earlier this year.

"We are hoping that they should be returning to the council in the region of £1bn which will significantly pay off a large proportion of the debt," Mr Jefferies, a Conservative, said.

"I can't say definitely how much we will get back.

"That will be confirmed once the sales have gone ahead later in the year."

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It is understood the council has so far recouped about £65m so far.

"These investments are worth something and they do have a value," Mr Jefferies said. "There is some interest. The bids have closed.

"If we can pay down the debt as quickly as possible and as much as possible that has a major impact on the council's ability to spend on services."

Martin Kerin, of the council's Labour group, said: "At the moment the council is in limbo. Residents know the council has taken their eyes of the ball because they are so mired in their own troubles.

"It is going to go on for the foreseeable future and every year that this goes on, residents are going to see more cuts to their services.

"They are paying more to receive less."