West Suffolk loan to 'financially reckless' Essex council repaid
Thurrock Council is in severe financial difficulties after borrowing millions to invest in solar energy
A loan with a financially reckless Essex council has been repaid on time to a Suffolk council.
West Suffolk Council’s £5 million loan with Thurrock Council was paid back yesterday.
In one of the most extreme financial disasters in local government, Thurrock Council admitted this year to nearing bankruptcy after losing £275 million in taxpayers’ money through risky investments.
At a West Suffolk Council cabinet meeting yesterday, leader of the council Cllr John Griffiths said: “This shows loaning to local authorities is safe, even when they are struggling financially.”
Investigations by the Bureau of Investigative Journalism helped reveal borrowing by Conservative-run Thurrock Council of ten times its annual spending on local services to invest in solar energy and other companies. This included loans from more than 100 local authorities.
Thurrock Council has asked the government for a bailout and warned of cuts and council tax rises.
A West Suffolk Council spokesperson said: “Councils loaning to other councils is common practice. West Suffolk Council’s loan was for a year and has been paid back on time and at the rate of interest agreed last December.”