Thurrock Council’s interim director of finance, Jonathan Wilson, has issued a section 114 notice as the authority faces a £470m in-year funding gap.
The notice, which indicates Thurrock will not be able to deliver a balanced budget from within existing resources this year and into next, means the council has to stop all but the essential spending needed to provide vital services to residents, pay staff and meet its legal duties.
It said spending controls would ‘need to remain in place for the foreseeable future and at least for the remainder of 2022-23 and 2023-24’.
The notice said it would ‘not be possible for Thurrock Council to achieve financial sustainability without exceptional support from DLUHC [Department for Levelling Up, Housing and Communities]’.
Thurrock said it would be asking for ‘exceptional financial support from the Government over a number of years to stabilise our financial position and give us time to have balanced budgets’.
Council leader Mark Coxshall, who took over in October, said residents and staff should feel ‘reassured that under my leadership we have started to grip our situation and have a clear sight of what needs to be done’.
A spokesperson for Thurrock’s commissioners added: ‘The issuing of a s114 notice is a necessary next step for Thurrock Council to take to address its overall financial position, alongside seeking further financial support from the Government.
‘The s114 notice will limit non-essential spending, which is an important element contributing to the stabilising of the council’s finances.’
This article was originally published in The MJ (£).
