THURROCK Council has branded a Financial Times article criticising its finances as a “snapshot” and a “misrepresentation”.

The Financial Times article stated that Thurrock Council had seen the biggest drop in reserves in the country.

The article claims the biggest fall in the country was recorded in Thurrock, which reported a drop of 65 per cent, to £11.8m, over the two-year period.

But the council has claimed it is in a “financially secure position”, stating that its general fund unallocated balance is a far better indicator of the council’s situation – rather than earmarked reserves used by the Financial Times.

The unallocated balance is currently at £11 million, a £3 million increase since 2015.

The council stated that the earmarked reserves had decreased as they are partially made up of government grants for specific schemes, which have been used.

While the unallocated balance represents a large fund which is available to the council, and can be used when suitable schemes come forward.

A Thurrock Council spokesperson said: “Thurrock Council is fortunate to be in a financially secure position, and in terms of financial stability the most important reserve is the council’s ‘general fund unallocated balance’.

“This has stayed stable at £8m since 2015 and has, as widely reported, increased by 38 per cent to £11m as at March 31 2018.

“In addition, the council was recently presented with a four year balanced budget demonstrating still greater stability.

“A Financial Times article published on Friday April 13 about ‘council reserves’ was a snapshot in time that misrepresents the current position.

“It included earmarked reserves that are, by definition, earmarked for specific reasons.

“For instance, they included the amount set aside to buy Serco out of their contract with the council – circa £10m – and balances held for schools that have reduced by £6m over the period as more schools transferred to academies.

“They also include government grants that are for specific schemes and not for a council’s general use.”