“Council borrowed £1bn from taxpayers to bet on British sunshine”, report Gareth Davies and Charles Boutaud of the Bureau of Investigative Journalism.
Among Thurrock’s rundown council estates and neglected public parks, typical of many towns after a decade of austerity, there is nothing to suggest that over the past three years the local council has borrowed and then invested hundreds of millions of pounds of other councils’ money.
Under the direction of a senior council officer Thurrock borrowed from about 150 local authorities across the UK with little public scrutiny. These loans were not for direct funding of council services, or investing in infrastructure – instead they financed solar farms more than a hundred miles away.
Now, let us not reflexively roll our eyes upon hearing the words “solar farms”. While there has been some reason for the widespread perception that investment in sunbeams has about the same record of success as investment in moonbeams, the technology of solar power genuinely has improved in recent years.
Sean Clark, Thurrock’s director of finance, oversaw the investment of £604m in the solar industry, investments he says were prompted entirely by intermediaries approaching him with money-making opportunities. In an extraordinary interview with The Bureau, Clark wondered whether he had gone too far. At last count Thurrock owed other councils an unprecedented £1bn.
OK, now you can roll your eyes.
John Kent, the former Labour leader of Thurrock council, called on the current administration to come clean. He said: “People absolutely need to be aware that the council has borrowed £1bn – that’s billion with a b.” He claimed that the council had declined to give elected members or the public adequate details of precisely how it invested the money.
As you might have deduced from that, Thurrock Council is currently controlled by the Conservatives.
Come to sunny Thurrock, where the Tories splurge on borrowed money and it is left to Labour to be the voice of prudence! Or come to sunny Britain, which is the same except for the bit about Labour.