THURROCK Council has formally announced its £469million debt has left it unable to balance its books following a string of disastrous investments.

The council today announced to more than 2,000 employees that it was effectively bankrupt ahead of a public statement by Jonathan Wilson, the council’s acting director of finance and Section 151 Officer that a balanced budget could not be achieved this year and into next year.

The council, which is undergoing a best value nvestigation by Government appointed commissioners, now has to stop all but the essential spending needed to provide vital services to residents, pay staff and meet its legal duties. The notice follows publication of the council’s latest financial position earlier this month.

Graham Snell, councillor responsible for finance, said the move was the "next procedural step in our journey to financial recovery" and would "pave the way for a formal request for additional bespoke financial assistance from the Government”.

Mark Coxshall, leader of the council, said he was "shocked" at the situation the council finds itself in but he added: “Residents and staff should feel safe knowing that our streetlights are still shining, our roads are continuing to be gritted during bad weather, and our most vulnerable friends and family are being looked after.

“They can also be reassured that under my leadership we have started to grip our situation and have a clear sight of what needs to be done."

A spokesperson for the Thurrock Commissioners said: “The Section 114 notice will limit non-essential spending, which is an important element contributing to the stabilising of the council’s finances. Our work with Thurrock to address wider structural budget issues continues in tandem with work on their day-to-day spending.”

At a press briefing ahead of the announcement, Ian Wake, acting chief executive, told the Local Democracy Reporting Service some previously agreed schemes like the £200,000 set aside to kickstart improvements to the Blackshots tower blocks wouldn’t necessarily be in danger.

He said: “It’s not necessarily just about statutory spend so where spend is preventing further spend then it’s still allowed under Section 114.

“In the case of Blackshots, doing nothing is going to cost the council a huge amount of money. My personal view is there is a strong best value case in continuing with Blackshots but that will need to be tested through this process with the commissioners.”

A special meeting of full council will take place on Monday, January 9 to discuss the notice.