South Tyneside Council Pledges Strong Defense Against Potential Solar Investment Lawsuit

A council has stated its intention to “vigorously defend” itself against a prospective financial claim initiated by a local authority facing financial difficulties. South Tyneside Council, alongside Stockton Borough Council and 21 other local authorities, may face legal action from Thurrock Council in Essex concerning solar farm investments that incurred substantial losses. A spokesperson representing South Tyneside indicated that the council is “aware Thurrock is considering legal action” against it, deeming the potential claim “completely unjustified”. Stockton Borough Council, for its part, confirmed that it is “considering our next steps”. Thurrock Council, located in south Essex, effectively declared bankruptcy two years prior, following its borrowing and investment of hundreds of millions of pounds, which led to the accumulation of a £1.5bn debt. The council obtained valuations for its solar investments from the Association for Public Service Excellence (APSE), an organization owned by local councils. Thurrock Council “believes that valuations of the solar assets undertaken by APSE, which they allowed the council to rely on, were negligent and overvalued those assets”. Conversely, APSE stated that it “entirely rejected” Thurrock’s assertion that the valuations “led to significant financial losses to Thurrock with negative impact on taxpayers”. Thurrock Council informed the BBC that the prospective claim is directed “against a representative group” of councils that are APSE members, with the stated aim “to reduce the impact and cost of the legal action for all the councils involved”. However, Mo Baines, chief executive of APSE, contended that this approach would result in “significant legal costs on other councils which we believe has no merit”. She also conveyed that she “remains hopeful there is a positive resolution”.