Government looking at sending commissioners in to fix council finances

CROYDON MAYOR REJECTS PROPOSED TAKEOVER AS 'NAKED POLITICAL ACT'

- By HARRISON GALLIVEN Local democracy reporter

THE Government has announced it is “minded to” appoint commissioners to oversee the running of Croydon Council, citing its long-standing financial problems and pressure on local services.

This follows the council’s assurances that it had stabilised its finances following its last bankruptcy in 2022.

The proposed takeover has drawn a vocal objection from Croydon’s Tory Mayor Jason Perry, who has called it a “naked political attack” from the Labour government. He added that the government was exhibiting double standards and that he had done everything he could to fix the borough's finances.

In a stark assessment of Croydon’s ongoing financial crisis, Secretary of State for Local Government Jim McMahon signalled the need for a “short and sharp reset” to get the troubled council back on track. In a written statement, he said: “Failing to change course would condemn Croydon’s residents to a worsening position without an exit strategy.”

If appointed, commissioners would be tasked with implementing a stabilisation plan, overseeing spending cuts and structural reforms that McMahon believes the council has so far struggled to deliver. The intervention, expected to last until July 2027, would be reviewed after 12 months, but officials insist this is the only way to drive real change at the pace Croydon now desperately needs.

While he acknowledged some progress, he noted that Croydon remains one of the most financially troubled councils in the country, with a debt of £1.4 billion.