Communication regarding Thurrock Council and the issuing of a Section 114 notice

As part of the voluntary and community sector of Thurrock, TCVS wanted to make sure you have had sight of the below that has been issued to partners by Thurrock Council.

The situation is complex but by working alongside our Government Commissioned partners, Essex County Council, we have been able to determine the scale of our financial challenges. In short, our in-year deficit is projected at £469.581m, which takes into account an estimated structural deficit in 2023/24 of £184.381m.

This means that the Council faces a significant budget gap in 2022/23 and cannot set a balanced budget in 2023/24, without seeking support from the Government.

To unlock this, we have today issued what is known as a Section 114 notice.

It is important to state that, despite what you may have heard, the issuing of a Section 114 is not a declaration of bankruptcy. Councils cannot go bankrupt in the same way a private enterprise can.

It is a procedural process that gives formal notice of our need to, and now ability to, enter into informed and detailed discussions with Government about a bespoke package of exceptional financial support, as we seek to balance our budget and move toward full financial recovery. 

The issuing of a Section 114 notice puts further monitoring action in place to manage our expenditure and limits the council to only acting on spend deemed essential to the delivery of its services.

However, we do still have a duty to deliver valued services to our Thurrock residents, and our partners.

Making this declaration today does not change our operational position:

• there will be no immediate cessation of services
• we will honour contracts we are committed to, and any related payment terms 

This news today marks a significant step forward in the council getting to grips with the situation and looking ahead, alongside Government. An extraordinary Full Council meeting will take place on Monday 9 January 2023, to discuss the notice and its implications, the council’s response and proposed actions being taken.

Significant work has been undertaken to build a comprehensive Improvement and Recovery Plan. This has been shared Government for comment, as we seek to add further rigour and external oversight into our plans to ensure financial sustainability for Thurrock Council.

For full visibility, we have issued a press release today and the Section 114 Notice and more information can be found on our website.

We appreciate you may have further questions about the specifics of this news and what it may mean for you. I will aim to ensure you have as much information as possible and are able to ask directly for anything you need clarity on.

I can only thank you again for your continued support at this time. It means a lot and only adds to our determination to see the council achieve full financial recovery.’

If we receive any further information we will forward it on at the earliest opportunity. You can find further information at Government intervention into Thurrock Council.