Simon Dedman

BBC political reporter, Essex

A company into which a struggling council invested hundreds of millions of pounds is being investigated by the Serious Fraud Office (SFO).

Thurrock Council in Essex was effectively declared bankrupt in 2022 - and had a debt of £1.5bn.

Between 2016 and 2020, the council invested millions into solar farms, via a bond scheme sold by the UK-based Rockfire Investment Finance Plc and other companies operating within the Rockfire Group, the SFO said.

Nick Ephgrave, director of the SFO, said: "Today's action is a significant step in our investigation concerning this suspected criminality."

Thurrock Council has welcomed the investigation.

Labour cabinet member Victoria Holloway said the SFO investigation "represents a vital step toward securing justice and ensuring accountability on behalf of our communities".

Thurrock has had to raise council tax above the rate of many local authorities in recent years and impose spending cuts.

Whilst £650m has been recouped from the investments the council made, millions have been lost.

Rockfire Group has since gone into liquidation.

Separate High Court civil proceedings brought by Thurrock Council are under way against Rockfire Investment Finance Plc and its former director.

In a statement the SFO said: "Rockfire offered multiple investment opportunities in renewable energy bonds, offering a return on investment between 3-6% as well as the return of the initial bond purchase cost."

It confirmed it had issued a series of Section 2 notices, compelling financial institutions to provide information on its newly opened investigation into alleged fraud committed against Thurrock Council.

Essex Police and Thurrock Council are helping in the early stages of this investigation.