Thurrock Council Repays Millions Of Pounds Borrowed From Brighton & Hove

Monday, 14 August 2023 08:49

By Sarah Booker-Lewis - Local Democracy Reporter

A bankrupt council which borrowed millions of pounds from Brighton and Hove City Council has paid back the money.

Thurrock Council borrowed a total of £15 million from Brighton and Hove – most of it at a time when the Essex authority’s finances were coming under scrutiny.

It has since emerged that businessman Liam Kavanagh cheated Thurrock out of tens of millions of pounds and went on a spending spree with the cash.

On Monday 31 July, the Bureau of Investigative Journalism revealed that he spent £130 million of taxpayer money on a country estate, private jet, luxury yacht and other multimillion-pound purchases including a Bugatti supercar.

Thurrock Council was effectively made bankrupt after investing £655 million in a solar farm business run by Mr Kavanagh.

In July last year, the Bureau of Investigative Journalism reported that Thurrock could lose £200 million of the £655 million handed over to Mr Kavanagh’s businesses.

By February this year, the Essex council was £1.5 billion in debt and in talks with the government to borrow up to £636 million to help balance its books.

Brighton and Hove made two of its three loans of £5 million each to Thurrock Council after concerns were first raised about the sums being invested in the solar farm company.

The first £5 million loan was made on Tuesday 12 May 2020 – just days before the Bureau of Investigative Journalism published its first report into Thurrock’s finances.

On the day after repayment was due, Thursday 12 May 2022, the loan was effectively rolled over, with Brighton and Hove lending Thurrock another £5 million.

The second loan was repaid on Thursday 11 May this year.

Thurrock borrowed a further £5 million from Brighton and Hove in October 2021 and repaid the money in October last year.

Brighton and Hove City Council has previously said that such government-backed loans have “no risk of default”.

More from Sussex News

‘A Kick In The Teeth For Lewes’: Lib Dem MP Expresses Disappointment Over Bus Station Loss

Lewes Lib Dems, including MP James MacCleary, have reacted after efforts to persuade Secretary of State Angela Rayner to overturn the South Downs National Park Authority’s (SDNPA) decision to allow the demolition of Lewes bus station were unsuccessful.
Results For Worthing’s Bathing Water Sites Revealed

Teams from Worthing Borough Council are working with the Environment Agency and Southern Water to identify sources of pollution impacting the town’s seawater.
£100,000 Robbery Of Bexhill Mobile Phone Store

An estimated £100,000 worth of electronic equipment was stolen from a shop in Bexhill on Monday evening (November 25).
Organisations In Wealden Receive Funding To Help Tackle Inequalities In Physical Activity

Six organisations have received grant awards to support physical activity projects within Wealden and improve health and wellbeing outcomes.
Festive Children’s Stories Brought To Life With Interactive Story Session

A selection of festive stories for young children will be brought to life in Chichester’s historic Guildhall in Priory Park thanks to an interactive Christmas story session.
Jail Time For Shop Owner Who Sold Illegal Tobacco

A shop owner who failed to appear in court after the discovery of £6,000 worth of illegal tobacco and cigarettes has been jailed.
Funding Boost For Community-Led Waste Prevention Projects In West Sussex

West Sussex County Council has partnered with its recycling and waste contractor Biffa, to launch a new Waste Prevention Community Grant Fund for community-based household waste prevention projects in West Sussex.
Newhaven RNLI Welcomes Quartet Of Mayors To Share Gratitude

Mayors of Peacehaven (Debbie Donovan), Seaford (Sally Markwell), Lewes (Imogen Makepeace) and deputy Mayor of Newhaven (Kim Bishop) were welcomed today by Susan Carroll, Newhaven RNLI’s LMG Chair to visit the lifeboat station. Roger Cohen MBE, (LOM) showed them around.
University Of Brighton Launches Health Innovation Hub To Tackle Health Challenges

The University of Brighton today unveiled its groundbreaking new Health Innovation Hub designed to reshape health research, education, and practice by addressing critical health challenges through collaboration, innovation, and education.
New Residential Care Home For Disabled Children In Brighton

Brighton & Hove City Council are developing a new residential home for disabled children and young people in the city.