Wickford 🆘 Slams Basildon Council Over “Anonymous” Response to Multi-Year Audit Failure

BASILDON, UK – Wickford 🆘 local community group has expressed "grave concern" following Basildon Council’s response to questions regarding its five-year failure to produce audited accounts. The Council’s rebuttal—which defends the financial loss of its subsidiary, Sempra Homes—notably lacked the endorsement of any qualified accounting or audit professional, instead being issued by a committee supervisor.

The exchange follows growing public alarm over the Council’s failure to publish signed-off accounts since the 2019/20 financial year. External auditors, Ernst & Young (EY), have recently recommended an immediate independent investigation into the Council’s accounting processes.

The "Ugliest Twins" in Essex?

The community group warned that the lack of transparency is particularly dangerous given the proposed closer ties between local authorities.

"With the potential merger of the Basildon and Thurrock authorities, taxpayers are at risk of adopting Essex’s 'ugliest  and most terrible twins,' a spokesperson for the group stated. "

Both councils have shown a reckless disregard for taxpayer funds; merging two authorities with such poor financial discipline creates a combined authority that is twice as unstable and twice as unaccountable."

Key Concerns Raised by the Watchdog:

• Anonymous Financial Defense: Despite the technical nature of the audit failure, the Council’s response was issued by administrative staff rather than the Section 151 Officer or a qualified finance lead.

• The £13.3m Sempra Gap: The Council dismissed a £13.3 million loss at its subsidiary, Sempra Homes, as "accounting movements." The community group argues this downplays the significant risk to taxpayer-funded assets.

• Audit Deadlock: While the Council claims to be "actively managing" risks, it has yet to provide a firm public timeline for when the backlog of audits (dating back to 2020) will be cleared.

The Auditor's Stance vs. Council Claims

The Council’s response claims it is "not correct" to suggest a loss of financial control. However, this contradicts the escalating pressure from EY, who have signaled the need for deeper examination into the Council’s Value for Money (VfM) arrangements and have requested an external accountant investigate the Council's processes.

The community group is calling for:

1. Immediate Appointment of the independent external investigators as recommended by EY.

2. Professional Accountability: A formal statement signed by the Council’s Chief Financial Officer.

3. A Hard Deadline: A public roadmap detailing exactly when the 2020–2025 accounts will be signed off.

NOTES TO EDITORS

    ∙    Wickford SOS campaigns on behalf of Wickford residents on issues of local regeneration, council tax payer justice and accountability

    ∙    Contact: wickfordsos@gmail.com

Please find below the written response to your question submitted to Council on the 19 March:-

From Mr Jackman to the Leader of the Council:-

Question

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 ?

Draft response

It is not correct to suggest that Basildon has “lost control of its finances.” The Council’s financial position continues to be closely monitored, regularly reviewed, and actively managed, with corrective action taken whenever required. This disciplined approach ensures risks are identified early and addressed promptly.

With regard to the external auditors’ recommendations, it is important to note that EY have not yet concluded their work. The risks highlighted to date identify the areas EY intend to examine in greater depth and do not represent final findings or conclusions. EY must now undertake further detailed work before completing their value‑for‑money assessment. We are awaiting their initial detailed comments, after which we will engage independent external advisers as necessary to support their work. We will continue to monitor progress closely and collaboratively with EY.

Turning to Sempra Homes and the reported £13.3m loss, clarification is essential. This figure reflects changes in asset valuations, where updated valuations indicate a reduction in value. These are accounting movements only and become a real financial loss only if and when Sempra chooses to sell the assets in question. Judging the right time to dispose of an asset is therefore critical to safeguarding value for both the Council and taxpayers. It is also worth highlighting that, before this valuation adjustment, Sempra generated a gross profit of £1.9m, demonstrating underlying strength in its operational performance.

Finally, we remain fully committed to working constructively with our external auditors to understand any concerns raised and to take timely, appropriate action. Transparency, sound financial governance, and delivering value for taxpayers remain central priorities. We will continue to publish financial reports, audit updates, and clear timelines to ensure residents are kept fully informed of the steps being taken.

Many Thanks

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Committee Team Supervisor

Committee, Member and Executive Services

01268 20--------

Basildon Borough Council 

 WickExiT Press Release 134 

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