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Thurrock Council
Section 114 notice issued December 2022
Summary
Between 2016 and 2020, Thurrock Council invested roughly £655m — much of it borrowed from other local authorities — into solar energy bonds sold by companies linked to Rockfire/Toucan Energy. The investments collapsed, leaving debts of around £1.5bn. A Serious Fraud Office investigation is now underway, with court filings alleging the scheme's director personally diverted misappropriated funds into a £13.7m yacht, a £9.1m private jet, and a Mallorca property.
The numbers
£655m
Total invested, 2016–2020
£1.5bn
Debt at time of notice
£452m
Estimated 2023/24 deficit
£150m
Alleged personal misuse
£700m
2024 asset sale price
10%+
Council tax rise, no referendum
Timeline
May 2016
Thurrock makes its first solar investment — £24m into the Swindon Solar Farm, operated via companies linked to Rockfire/Toucan Energy.
October 2017
The council adopts a new investment and treasury management strategy, handing its finance director an unusually high level of delegated authority to make investment decisions quickly.
2016–2020
Total investment into Rockfire/Toucan-linked solar bond schemes grows to roughly £655m, much of it borrowed from other councils, promising returns of 3–6%.
2022
New leadership and auditors uncover the scale of the problem: expected investment losses of £275.4m, a further £129.2m set aside to repay investment debt, and an in-year funding gap of £469.6m before any mitigation.
November 2022
Toucan Energy Holdings 1 (TEH1) enters administration, with Thurrock as its primary creditor.
December 2022
The council issues a Section 114 notice, citing an estimated 2023/24 deficit of £452m. Debts are put at approximately £1.5bn.
February 2023
The council accepts further government intervention; Essex County Council is brought in to oversee Thurrock’s finances.
January 2023
Sean Clark, Thurrock's finance director throughout the period the investments were made, resigns after being suspended the previous autumn.
2023 onward
Thurrock sues Dubai-based businessman Liam Kavanagh and his Rockfire companies in the High Court, alleging around £150m was misused for personal benefit — including a £13.7m yacht, a £9.1m Bombardier jet, and a £3m property in Mallorca.
January 2024
The underlying 53-solar-farm portfolio is sold to Schroders Greencoat for approximately £700m, cutting the council's debt by more than £500m.
2024
Thurrock separately files a claim against 23 other councils (members of APSE) alleging they gave negligent valuations of the solar assets, seeking to recover losses it values between £42m–£54m; APSE disputes the claim and puts the real figure closer to £17.6m.
May 2025
The Financial Reporting Council effectively bans Sean Clark from practising as an accountant, following its own investigation into his conduct.
June 2025
The Serious Fraud Office confirms it has opened a formal investigation into alleged fraud by Rockfire Investment Finance Plc against Thurrock Council.
Key figures
Liam KavanaghDubai-based businessman, director of Rockfire/Toucan entities
Sean ClarkThurrock's finance director during the investment period; later banned by the FRC
Cllr John KentCouncil leader pursuing recovery of lost funds through litigation
Essex County CouncilAppointed to oversee Thurrock's finances following the crisis
Where things stand
The Serious Fraud Office investigation is ongoing, as is Thurrock's own litigation against Kavanagh and against the 23 councils it blames for bad valuations. The 2024 solar portfolio sale meaningfully reduced the council's debt, but recovery is far from complete, and residents have already absorbed steep council tax rises and cuts to children's services, libraries, and adult social care as a direct result.
Sourced from council and government reports, the Institute for Government, CIPFA, Local Government Chronicle, Room151, and contemporary news coverage. Some figures vary slightly between sources depending on scope and date — where that happens, we've noted the range rather than picking one number.