MALDON District Council has been assured a £2million loan it gave to a struggling council will be repaid.

The Government was so concerned about Thurrock Council’s financial situation it stepped in last month to put commissioners in charge of its money.

Castle Point, Maldon and Tendring district and borough councils confirmed they had lent £3m, £2m and £6m respectively to Thurrock Council, which lost control of its finances last month.

Essex County Council now controls its financial functions and has powers to assess what action may be needed to limit risks to services.

The council, which has debts of one billion pounds, has been told it may borrow more public money to meet its loan repayments.

It’s expected to borrow almost £850million from the public purse and most of it will be used to repay other councils.

It comes after a three-year investigation by The Bureau of Investigative Journalism revealed Thurrock Council borrowed more than £1billion and invested hundreds of millions of pounds, particularly in solar energy.

Maldon District Council said it has received a letter confirming all local authorities will receive their money as agreed.

A spokesman said “The council has received an assurance letter regarding the security of the loan to Thurrock Council and this letter confirms that all local authorities will receive their money as agreed.”

Councillor Rob Gledhill (Con, Little Thurrock Rectory) resigned as leader of Thurrock Council on September 2.

He said in an earlier statement: “Whilst I welcome this news and the support from Her Majesty’s Government it has become clear over the past few months that the situation regarding council investments, and subsequently its finances, has not been as reported.

“As Leader of the Council the political buck stops with me and as such it would only be right, and expected, that I resign as Leader of the Council. However, I will be remaining as an elected member to support the new Leader and the Commissioner as required.”