@[email protected]

“A Tory-led council has admitted a series of disastrous investments in risky commercial projects caused it to run up an unprecedented deficit of nearly £500m and brought it to the brink of bankruptcy.”

The leader of the council happens to be the partner of the local Tory MP, keeping it in the family

https://www.theguardian.com/society/2022/nov/29/thurrock-council-admits-disastrous-investments-caused-500m-deficit

Thurrock council admits disastrous investments caused £500m deficit

Tory-led Essex authority is on brink of bankruptcy and has appealed to government for emergency bailout

The Guardian
Nov 30, 2022 at 10:59pmWeb
Show thread@[email protected]Nov 30, 2022
The staggering scale of the catastrophe at Thurrock council – one of the biggest ever financial disasters in local gov – is contained in a report made to the council’s cabinet, which reveals it has lost £275m on investments it made in solar energy & other businesses, & has set aside a further £130m this year to pay back investment debts.
Show thread@[email protected]Nov 30, 2022

“3 yrs of investigations by the Bureau of Investigative Journalism (BIJ) have helped force Thurrock to reveal the full scale of its investments, including hundreds of millions lent to companies owned by businessman Liam Kavanagh to invest in 53 solar farms

Thurrock invested £655m in Kavanagh’s companies, and expects to lose £188m on the deal

Show thread@[email protected]Nov 30, 2022
“It also expects to make a £65m loss on its investment in a company called the Just Loans Group, which went bust in June, and millions more on a series of other deals that turned sour.”
Show thread@[email protected]Nov 30, 2022
“In common with many other councils Thurrock attempted to offset the effects of years of austerity cuts to its funding by borrowing cheaply from the Treasury and investing in commercial business in the hope this would provide an alternative income stream. By 2019, English councils had borrowed over £6bn for this purpose.”
Show thread@[email protected]Nov 30, 2022

I believe several other councils were drawn into this disastrous investment but I am not sure which ones or to what extent.

I don’t expect this scandal to end here.

Show threadAnita WilcoxDec 2, 2022
@Fascinatorfun Well, well, well!
Show threadPaul TyremanNov 30, 2022
@Fascinatorfun didn't it borrow several million of that from Cornwall Council, or was that someplace else my council tax got thrown at?
Show threadDarryl Collins 🚴🏻Dec 2, 2022

“Thurrock appealed to the government for an emergency financial bailout and warned that it will have to push through a drastic programme of cuts to local services and staff redundancies, along with a probable fire sale of buildings, land and other assets as it attempts to stay afloat. Council tax rises are also likely.”

Disaster capitalism.