Thurrock Council borrowed hundreds of millions to invest largely in solar energy.
But the investments failed and led to the then Conservative authority needing government intervention to oversee and provide emergency financial support.
Labour took control of Thurrock Council in 2024.
The council is set to be abolished as part of the reorganisation of local government and merge with neighbouring councils in the next few years.
Leader Lynn Worrall said: “I am delighted that our Labour Government has listened to our calls to help protect Thurrock residents from the financial problems created by the Conservatives as we move into a new council.”
Butthe Conservative opposition leader George Coxshall said Thurrock “still has a significant way to…