A recent legal battle over the transparency of Thurrock Council’s £815m debt-leveraged investments in solar power bonds highlights the importance of understanding and managing balance sheet risk in the public sector.
The Bureau of Investigative Journalism has won an appeal against a ruling by the Information Commissioner that Thurrock Council does not have to disclose details about its investments in solar power projects. Thurrock has until 12 April to provide the information requested, although it may not have to answer all of the questions asked if it can provide alternative grounds for non-disclosure under the Freedom of Information Act.
Thurrock Council spent £393m on local services in 2019-20, according to its latest report and accounts published in November 2020, with interest receivable and similar income of £50m (significantly greater than £21m in interest payable and similar charges and a £3m loss on £373m of investments carried at fair value through profit and loss) supplementing its income from local taxes and other sources.