Troubled Thurrock BC has revealed it has no way to fill its £470m in-year budget gap without a Government bailout.
There is a further £184m budget gap for 2023-24, including money put aside to write down debts and interest payments.
The total two-year budget gap of £654m is more than four times the council’s current net services general fund budget of £152m.
Council leader Mark Coxshall, described the funding gap as ‘shocking’ and said Thurrock would have to ‘request exceptional financial support from the Government for a number of years’ to stabilise its budget.
While Thurrock has not yet issued a section 114 notice to halt non-essential spending, Cllr Coxshall said the council would need to consider asset disposal, cuts, council tax rises and Government support.
He added: ‘I am absolutely determined to break the council’s past culture of secrecy with complete openness, honesty and transparency.’
A Best Value report showed the council faced losses totalling £275m, with a further £129m put aside to repay investment debts in 2022-23.
Lead commissioner for Thurrock, Gavin Jones, who is Essex CC’s chief executive, warned changes to council services were ‘inevitable’.
This time last year, the council faced a financial black hole of £34m over two years.
Read the latest council report here
This article was originally published by The MJ (£).
