Thurrock Council: Debts
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his decision letter to Essex council leaders on local government reorganisation, dated 25 March 2026, what estimate he has made of the debt projected to be acquired by Thurrock council by 2028.
Answered by Alison McGovern
All proposals for local government reorganisation were considered carefully, on a case‑by‑case basis, against the criteria set out in the statutory guidance, alongside responses to the consultation, representations made, and all other relevant information. This included evidence on the estimated costs and benefits of each proposal. The five unitary model met the criteria on being the right size to achieve efficiencies, improve capacity and withstand financial shocks.
The Government has committed to repay in-principle £200m of debt repayment support to Thurrock Council in 2026-27. This is a significant and unprecedented commitment given the historic capital practices at the Council and is a decision that has not been taken lightly, reflecting the value for money case for protecting taxpayers from the spiralling costs of ever-increasing debt. This is a first tranche of debt repayment support, and we will continue to explore what further debt support is required at a later point.
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