Thurrock council admits disastrous investments caused £500m deficit

Tory-led Essex authority is on brink of bankruptcy and has appealed to government for emergency bailout

A Tory-led council has admitted a series of disastrous investments in risky commercial projects caused it to run up an unprecedented deficit of nearly 500m and brought it to the brink of bankruptcy.

The staggering scale of the catastrophe at Thurrock council in Essex - one of the biggest ever financial disasters in local government - is contained in a report made to the council's cabinet, which reveals it has lost 275m on investments it made in solar energy and other businesses, and has set aside a further 130m this year to pay back investment debts.