Minister set to extend Thurrock intervention for further three years

Responding to the report in a ministerial statement on Thursday (19 June), Jim McMahon said it was clear that Thurrock was "in a very different place" from the council that the then Government first appointed commissioners to in September 2022.

However, he added that he was satisfied the council is still failing to meet its best value duty in light of the findings.

In their report, the commissioners, led by Gavin Jones, stated that there were "still too many areas of fragility in the council's recovery and still some major areas of work yet to be done" before recommending that the Government extend the intervention.

The commissioners added that there should be a phased approach to winding down the intervention, particularly as the outcomes of local government reorganisation in Essex "become clearer over time".

Despite the criticisms, the fifth report also praised a "rapid pace of change" in areas such as governance and improved financial management.

Thurrock has been subject to intervention measures since September 2022 over concerns about the council's ability to meet its best value duty. 

Three months later, the local authority issued a section 114 notice after the commissioner team uncovered a £470m funding gap, which was partly the result of financial losses from investments in solar energy businesses.

The Government later escalated its intervention, appointing an expanded commissioner team in February 2023.

Commissioners have issued a series of reports since then, with the latest report being made public on Thursday.

In his ministerial statement commenting on the report's findings, McMahon said he plans to exercise powers under section 15(5) and 15(6) of the Local Government 1999 Act to implement a new package that ensures the council's compliance with its Best Value Duty subject to consultation.

His proposal consists of issuing new directions to Thurrock until April 2028, which 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.

"It is my view that issuing new Directions to extend the intervention and appointing Commissioners would provide the additional support required by the Authority to secure compliance with the Best Value Duty and also would ensure that the intervention timetable reflects the broader context for the area and aligns it to the proposed timelines for local government reorganisation," he said.

The minister said he wished to "commend the council's members and officers and the Commissioners for the improvements they, together, have made".

He also said he was pleased that the commissioners had reported that the council "continues to own the recovery agenda".

"However, the issues the council faced at the start were both broad and deep, and the Commissioners' fifth report makes clear that the recovery remains fragile as the improvements still need to be embedded across the organisation," he added.

He specifically pointed to the council's continued reliance on exceptional financial support from the Government in order to balance its budget.

McMahon also noted the report showed that Thurrock "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".

He added: "A robust transformation plan is needed to deliver the council's proposed operating model and meet savings targets.

"Organisational capacity challenges remain and Commissioners consider that the council has not yet 'demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement'."

The decision comes as all 15 Essex councils, including Thurrock, are in talks about local government reorganisation and devolution.

On reorganisation, McMahon said 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".

Responding to the commissioners' report, Cllr Lynn Worrall, leader of Thurrock Council, said: "Residents of Thurrock, council staff and elected councillors will all welcome the fact that Thurrock Council is making real and sustained progress on what will be a long journey of improvement – but we are collectively determined to get there, making sure Thurrock is a council fit for the future.

"Thurrock Council is getting better. Our children's services have been rated as 'outstanding' by Ofsted, the National Planning Service has highlighted real improvements in our planning service and our new Corporate Plan sets out a clear direction for the future, which we will be held accountable to. But there is more work yet to do.

Adam Carey