The Minister of State for Local Government and English Devolution has confirmed that he will meet with the Executive Mayor of Croydon, shortly after parliamentary recess, to discuss the financial challenges the borough is facing and its journey of recovery.

This follows Mayor Jason Perry’s call for the new Secretary of State, and Croydon’s four newly-elected MPs, to work with him to fix the borough’s finances and secure its ongoing financial sustainability.

Mayor Perry wrote to the Ministry on the appointment of Angela Rayner MP as Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government in the new cabinet. He outlined the progress made under his leadership but stressed that a new solution was needed from government to tackle Croydon’s historic debt problem and become financially sustainable.

Jim McMahon MP, the Minister of State for Local Government and English Devolution, responded, “this government is committed to resetting the relationship between local and regional government to establish partnerships built on mutual respect, genuine collaboration and meaningful engagement.”

Mr McMahon MP said he would meet with Mayor Perry and Croydon’s Improvement and Assurance Panel in September, after summer recess. “I would be happy to meet with you to discuss progress at the London Borough of Croydon, the challenges your council is facing on its on-going reform and recovery journey and what this means for residents,” he added.

Mayor Perry has set out the significant progress the Council has made, in fixing the Council’s finances – progress which has been repeatedly noted and welcomed by the borough’s independent Improvement and Assurance Panel.

However, the Council still carries a £1.6billion debt burden, which Mayor Perry inherited, and which is the legacy of the past mismanagement that led to the council’s financial and governance collapse in 2020. This continues to cost the council £62million per year to service – money which could otherwise be spent on improving services for residents.

“This is a positive development in my campaign to find a longer-term solution for Croydon that will enable us to get back on track. We have made huge strides in tackling our financial challenges and tightly managing all the parts of our budget that are within our control. But Croydon will need a new solution, with a support package from government, if the council is to become financially sustainable for the future.

“I look forward to working with Minister McMahon on bringing forward this solution and getting a deal for our residents.

Jason Perry, Executive Mayor of Croydon