West Lindsey council faces legal action from 'bankrupt' council

A Lincolnshire council could face legal action from a financially struggling authority attempting to recoup millions of pounds. West Lindsey District Council has been named as one of 23 authorities which could be targeted by Thurrock Council.

The Essex authority lost £200m of public money in a disastrous solar farm investment between 2017 and 2020. Thurrock Council is in dispute with the Association for Public Service Excellence, which it claims was "negligent" in misvaluing the assets.

APSE is a non-profit organisation that advises members on how to improve public services. It is owned by its members, including around 250 councils, who all share legal liability.

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Thurrock Council has selected a sample of 23 councils rather than attempting to go after every single member. Derby City Council, Bolsover in Derbyshire and Gedling in Nottinghamshire have also been named, according to The Bureau of Investigative Journalism.

Sally Grindrod-Smith, Director of Planning, Regeneration and Communities at West Lindsey District Council, said: “We are aware that Thurrock Council may be considering legal action against other local authorities, however no legal claims have been made against West Lindsey District Council.”

Thurrock Council also plans to continue a claim against Rockfire Capital and its owner, Liam Kavanagh. Rockfire was a client of APSE when 32 solar farm were valued at £542m in 2017.

When the council sold the solar farms, it suffered a £200m loss, and it effectively declared itself bankrupt through a Section 114 notice. Cllr John Kent (Lab), leader of Thurrock Council, said: “Thurrock Council promised its residents, as well as Commissioners and the Government, that it will leave no stone unturned in its attempts to recover public money that was lost through its well-publicised poor investments.

“We are fully aware of the huge financial pressures facing local government, and we have no desire to increase that burden, but we do need APSE to take responsibility for the advice they provided and to help right those wrongs for the people of Thurrock.” APSE said it “entirely rejected” claims it had failed to carry out its duty, and it is “highly disingenuous” to say it hadn’t tried to resolve the dispute.