"External Auditors Request Independent 

Probe Into Basildon's Finances"

Wickford 🆘 question Basildon Council on the reliability of The Councils Accounts After the External Auditor Requests An Independent Probe Into Basildon Finances

One of the world’s largest audit firms has told Basildon Borough Council it cannot complete its audit until the Council commissions an independent external investigation into its own finances.

In its Audit Update Report dated 31 January 2026, presented to the Audit and Risk Committee on 26 February, Ernst and Young states it “believes the Council needs to formally investigate and report on these issues, before we can draw appropriate audit conclusions.”

This is an extraordinary position for external auditors to take.

Basildon Borough Council now carries £688 million in gross debt. In 2010 that figure was £190 million. The sharpest rise came between 2019 and 2021, when debt increased from £340 million to £610 million in just two years.

Key Findings From the Audit Report

• Financial working papers rated “Ineffective”, the lowest possible rating. Auditors were unable to complete key audit work on debtors and creditors.

• Council-owned company Sempra Homes reported £13.3 million in losses, mainly from asset impairments that auditors have not yet verified.

• The Council’s fixed asset register contains material errors.

• Procurement and contract management failures have been identified but not quantified or fully explained.

• 35 percent of General Fund revenue is spent on debt repayments before services are funded.

• Internal Audit gave only “Limited Assurance” for 2024/25.

• No audited accounts have been signed off since 2019/20.

A Wickford SOS spokesperson said:

“What started as a Garden Waste Charge has led Basildon to the brink of financial collapse. For years we warned that excessive borrowing, weak oversight and poor financial controls would end like this. Last Thursday the external auditors confirmed it.

Basildon Council’s finances are out of control. Core processes are not being followed. The Council cannot properly account for its own assets. More than a third of revenue is consumed by debt before a single frontline service is delivered.

There appears to be an attempt to hide this financial crisis inside Local Government Reorganisation. Our analysis suggests the money could run out before May 2027. 

"Whoever takes control of Basildon Council after the May elections 

will inherit a financial timebomb.”

To protect the taxpayer Wickford SOS is posing  this  public question to the leader of Basildon council at the  Full Council meeting  on March 19th.

Question to The Leader of Basildon  Council.

 As a former audit chair, I'm deeply concerned Basildon has lost control of its finances and the impact this will have on taxpayers for years going forward, what action is this administration taking to redress EY recommendations that : an immediate independent external investigation  is commissioned ,more Transparency over the £13.3 million Sempra Homes losses and that Basildon publish  a clear public timeline for restoring audited accounts for the first time since 2019/20 ? 

Notes to Editors

1. Findings are drawn from documents presented to the Audit and Risk Committee on 26 February 2026, including the EY Audit Update Report for the year ended 31 March 2025, Q3 Capital and Investment Strategy Report, Treasury Dashboard December 2025, and Q3 Prudential Indicators 2025/26.

2. The EY quotation appears on pages 6 and 11 of the Audit Update Report.

3. The £688 million figure refers to gross debt as at 31 December 2025.

4. The 35 percent financing cost ratio is drawn from the Q3 Prudential Indicators document.

5. Sempra Homes is wholly owned by Basildon Borough Council.

6. Local elections for Basildon Borough Council take place on 7 May 2026.

For Comment 

Wickfordsos@gmail.com

 WickExiT Press Release 11 

Follow Wickford 🆘 On FaceBook