Support from the Ministry of Housing, Communities and Local Government will enable the council to begin repaying up to £200 million of historic debt as part of its long-term financial recovery programme.
The support package recognises both the significant progress made by Thurrock Council in reducing debt, cutting spending and improving its financial position, and the scale of the challenge created by historic borrowing and investment decisions.
The agreement has been achieved through close and constructive collaboration between Thurrock Council, the government-appointed Commissioners and the Ministry of Housing, Communities and Local Government.
The support is an important milestone in the council's journey towards financial sustainability, but it is not the end of the process. The council will continue to deliver its recovery strategy, reduce debt, transform services and strengthen its long-term financial resilience.
Cllr Sara Poyntz, Cabinet Member for Finance, said: "We have been working hard to make savings, divest from investments and sell assets that are no longer required by the council, but the sheer size of the debt means that it is too much for one council to recover from alone.
"I am extremely grateful to the government for this financial support and to everyone who has worked with us to secure it, including the Commissioners. This support recognises the progress the council has made in addressing the financial challenges it inherited.
"It will enable us to begin repaying up to £200 million of historic debt and will create ongoing savings by reducing debt repayments and the amount of interest owed. This will make a significant difference to our financial position and support our longer-term plans to become financially sustainable.
"While this is a major step forward, there is still more work to do. We remain committed to delivering our recovery programme and ensuring residents receive the services they need while we continue rebuilding the council's finances.
"These debts are historic and the money was borrowed and invested many years ago. Nevertheless, we need to manage the financial situation that we have inherited, and this support will be a real boost as we continue that work."