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Preston City Council says it is taking legal advice as it defended its position amid a potential £2m lawsuit from another local authority.
Thurrock Council, based in Essex, is reported to be considering suing 23 councils for a total of £50m over disastrous solar farm investments which led to it going bankrupt.
As first reported by the Bureau of Investigative Journalism, a total of £200m was lost through the investments and Thurrock has accused Association for Public Service Excellence (APSE) – which is made up of members including 250 local authorities – of overvaluing the solar farms.
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The council endured the huge loss after investing in more than 50 energy-generating sites that turned out to be worth far less than it believed. Rather than suing the entire group, which strongly denies the accusations, a sample of 23 councils has been selected.
A spokesperson for the council said: “Preston City Council is extremely disappointed by the current legal threat by Thurrock Borough Council to recover sums it alleges it has lost as part of its investment in solar farms.
“This is a case that has been ongoing for some time and Preston City Council vigorously defends its position as a member of the Association for Public Service Excellence (APSE) which is a not-for-profit, unincorporated association.
“Preston City Council is taking legal advice in respect of its position and is playing an active role in ongoing discussions with fellow members.”
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