The government is to provide £200m to pay off part of Thurrock Council’s debt, according to its Labour leader.
The unitary authority in Essex was declared effectively bankrupt in 2022 with a debt that peaked at £1.5bn.
Thurrock Labour MP Jen Craft said the debt relief was “a turning point for Thurrock”.
The government is expected to announce further details later on Wednesday.
Thurrock Council borrowed hundreds of millions of pounds 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…