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£10 million Owed to GBC by Troubled Thurrock Council Will Be Repaid

Published on: 10 Oct, 2022
Updated on: 10 Oct, 2022

By Martin Giles

£10 million owed to Guildford Borough Council by Thurrock council is safe according to an official appointed to administer the council’s financial affairs.

GBC was one of three Surrey councils owed a total of £30 million by Thurrock. Neighbouring Essex County Council were sent in by the government because of the amount of debt Thurrock Council, a unitary authority, had built up.

See: £10m Owed to Guildford Borough Council By In-Trouble Thurrock

In a letter to the leader of Guildford Borough council dated October 4, an officer wrote: “As you will know, the intervention in Thurrock Council to address serious concerns about the financial management of the council is being led by Essex County Council…

“The move comes in response to grave concerns about the exceptional level of financial risk and debt incurred by the council.

“One of the early-stage issues the commissioners have dealt with was the question of the impending repayment of inter-authority loans, which a number of local councils have made to Thurrock and which are now becoming due for repayment.

“The council can now confirm it has worked with the commissioners to agree plans with the Department for Levelling Up, Housing and Communities and Treasury to refinance its short- term borrowing through the Public Works Loan Board. Consequently, the council can confirm the repayment of inter-authority loans will be made in line with the agreed terms of the relevant loans.”

Cllr Tim Anderson

Tim Anderson (R4GV, Clandon & Horsley), lead councillor for Resources at GBC, said: “It’s reassuring to have received confirmation from the government that there is no risk of default on short-term debt owed by Thurrock Council to Guildford and other councils. It’s also worth noting that no UK council has ever defaulted on a loan.”

 

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