Cash-strapped Thurrock Council proposes measures to cut costs

5 January 2023

News image — Residents at the Thurrock Council-owned Seabrooke Rise estate have complained of mould and damp since cladding was removed

Stuart Woodward/BBC tower blocks in Thurrock — Residents at the Thurrock Council-owned Seabrooke Rise estate have complained of mould and damp since cladding was removed

A council that is effectively bankrupt is planning to stop filling some job vacancies in order to save money.

Thurrock Council in Essex has been lumbered with a £469m funding black hole and is discussing a rescue package with the government.

Councillors have been asked to approve a decision not to fill the existing vacancies in its Housing Revenue Account (HRA) team.

The authority has also proposed raising rents for social housing tenants by 7%.

Thurrock issued a section 114 notice in December, effectively declaring itself bankrupt, following a series of failed investments.

A report to the local authority's housing overview and scrutiny committee, due to meet on Tuesday, said there were a "number of vacant posts" which would cause "minimum disruption to key front line services" and would eliminate the need for any redundancies.

Councillors will be asked to accept a 5% vacancy rate in the HRA team during the 2023/24 financial year.

The vacancy proposal, the report said, would cut £574,000 from the HRA's operational budget of £15.5m - which will help address the department's £1.4m deficit.

Thurrock Council's new office block — Thurrock Council's current funding gap is more than three times larger than its annual budget

The report also recommended councillors approved a plan to half its £634,000 "assisted decorating programme" budget.

Service charges for social housing, which include maintenance to lifts, doors and caretaking, were also proposed to increase by 10.1%.

The social housing rent increase of 7% means an average one-bedroom home will cost tenants £82.54 per week, up from £77.14.

John Kent, outside the Thameside Theatre in Thurrock — John Kent, leader of the Labour group on the council, said the measures were a sign of things to come

Luke Spillman, the Conservative councillor responsible for housing, said: "This below inflation rate increase is also below the increased costs the council faces as a result of inflation and still means that the average rent for a two-bedroom council property in Thurrock is around £90 a week, considerably less than half the equivalent of a privately rented property."

The leader of the Labour group, John Kent, said the increase in rents and service charges was a "double whammy" for tenants and the measures were the "face of things to come from a council that is bankrupt".

"We are also fairly certain that council tax will go up at a level above the cap, at 7%, and in return, council tenants will be getting a poorer service," said Mr Kent, speaking to the BBC.

"What we are seeing in the housing service will be played out across council services."