Local Government Best Value: Thurrock Council

Jim McMahon Excerpts

Thursday 19th June 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

As I have previously stated when updating the House, this Government are committed to resetting the relationship with local and regional government, and to establishing partnerships built on mutual respect, collaboration and meaningful engagement. Local councils must be fit, legal and decent, and this Government are taking the action necessary to fix the foundations of local government. I am today updating the House on the steps that we are taking to support Thurrock council to recover and reform.

I am today publishing the commissioners’ most recent report, which I received in May. It is clear that the council is in a very different place from where it was when the previous Government first appointed commissioners to it in September 2022. I want to commend the council’s members and officers and the commissioners for the improvements that they, together, have made; and I am pleased that the commissioners consider that the council

“continues to own the recovery agenda”.

However, the issues that the council faced at the start were both broad and deep, and the commissioners’ fifth report makes it clear that the recovery remains fragile, as the improvements still need to be embedded across the organisation.

While progress has been made to address its historical financial accounts and governance, the council still relies on Government support to set a balanced budget and there remains an annual structural deficit. The council’s general fund debt position is estimated at £800 million by the end of 2025-26. The Government have indicated that we will provide an initial tranche of financial support for debt repayment for Thurrock council in 2026-27, ahead of local government reorganisation. We will continue to work with the council to ensure that any support represents value for money for local and national taxpayers.

The council still needs to evidence deliverable plans to make corporate transformational savings to secure sustainable services, and there remains a need for it to strengthen its internal controls, especially across internal audit and risk management. A robust transformation plan is needed to deliver the council’s proposed operating model and meet savings targets. Organisational capacity challenges remain and the commissioners consider that the council has not yet

“demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement”.

Having considered the report carefully, I am satisfied that the council is not yet meeting its best value duty.

While proposals for local government reorganisation and devolution present the council and its residents with real opportunities, it is vital to ensure that the council has the capacity and capability to continue to drive its own recovery and reform alongside the implementation of either or both of these substantial change programmes.

Proposed package

I am minded to exercise powers of direction, under sections 15(5) and 15(6) of the Local Government Act 1999, to issue new directions to Thurrock council extending the intervention at the council until 30 April 2028. These would require the council to take actions to address the outstanding issues and priorities, as well as continuing to engage with commissioners who would be able to exercise specific council functions. The commissioner team, if appointed, would continue to consist of a lead commissioner, a finance commissioner and a managing director commissioner.

This extension to April 2028 would give the council time to deliver further improvements and embed the necessary changes across the organisation, but it would also ensure that the intervention timetable reflects the broader context for the area and aligns it to the proposed timelines for local government reorganisation. This seeks to ensure that there is external oversight and assurance of the council’s improvement journey as it prepares for any future arrangements and provides flexibility to review the model of intervention throughout this period. It will be important that there are clear measurable milestones over the next phase of the intervention, and I would intend to review the proposed arrangements, if implemented, by summer 2026, when I would expect there to be further clarity on broader plans for devolution and local government reorganisation across greater Essex.

Representations

I am now inviting representatives from Thurrock council and any other interested parties on the proposed intervention package by 2 July. All representations will be carefully considered and any other evidence received, before I take a final decision about how to proceed.

Conclusion

I am committed to working in partnership to provide the necessary support to ensure Thurrock council’s compliance with the best value duty and the high standards of governance that local residents and service users expect.

I will deposit in the Library of the House copies of the documents referred to, which are being published on gov.uk today. I will update the House in due course.

[HCWS714]