The Government has announced that it is ‘minded to’ appoint commissioners at Croydon, owing to the severity of the Council’s financial situation caused by the historic debt and increasing service demand. It has invited representations ahead of a final decision.

Responding to the announcement, the Executive Mayor of Croydon, Jason Perry has said: “My top priority has always been to fix the Council’s finances for our residents. We have done everything possible to achieve this at a local level whilst protecting vital services.

“Croydon Council has made savings of £167m over the last four years and will make £50m more savings this year.  We have generated over £230m in capital receipts, including £130m of asset sales and have plans to sell a further £68m assets this year.  The Council also raised Council Tax by 10% over the cap in 2023, to help meet the Panel’s demand that we close the gap in the Council’s finances. We have a fully funded two-year transformation plan to significantly reduce the cost of delivering our services.

“If at any time the Panel or Government felt that there was any action the Council should be taking, and was not, they had the power to instruct us. They never did.

“Surely that means we are doing everything possible, and they agree with our actions? We have already made very difficult decisions and in my view the residents of Croydon have felt enough pain.

“Despite all the improvements that have been delivered by the Council and its staff, it appears the Government wants to centralise control into the hands of commissioners.”

Mayor Perry has stated that he is not willing to support any cuts that would decimate local services, nor is he prepared to break his promise to residents of no more Council Tax rises above the Government cap.

The Government’s announcement is based on the Improvement Panel’s final letter, also published today. Croydon Council disagrees with the conclusions in the Panel’s letter and has raised concerns with the Government over its content and compliance with statutory guidance.

The Council will be considering all options before submitting its formal response to the Government.

Read the Panel’s letter to the Government, and letters to the Government from Executive Mayor Perry and the Council, on the Council website.