CROYDON IN CRISIS: Staff in Fisher’s Folly have already dubbed the plan ‘No Future Croydon’. After cuts of £100m from council budgets in four years, now the chief exec is forking out public money to find more ways of axing services for children, older people and SEND. By our Town Hall reporter KEN LEE
Pointless: Croydon residents should be demanding to know what their Council Tax is spent on – as their services face even further cuts
Cash-strapped Croydon Council under Tory Mayor Jason Perry might not have enough money to run its public services, to keep its public libraries open or to continue operating some of its pre-school nurseries, but he’s managed to find millions of pounds to hire-in consultants to advise on how to cut back services even more.
Not one firm of consultants.
Not two.
But three firms of consultants are being hired in by chief executive Katherine Kerswell under the typically unaware project title for the latest round of cuts of “Future Croydon”. Or what the council’s demoralised staff have already dubbed “No Future Croydon”.
This is all part of what Kerswell – who is paid £192,000 per year for whatever it is she is supposed to be doing – euphemistically calls “transformation”. It is, in reality, what looks to be a final hollowing out of the local authority, which already demonstrates on a daily basis that it is incapable any longer of delivering even the most basic services.
According to a Freedom of Information request from Inside Croydon, we know that one of the appointed consultants, Newton, are to be paid £1million for an initial six months’ work on finding more cuts in the council’s Adult Social Care and Health directorate.
This area of the council’s work is positively groaning under the increasing burden of greater demand, especially with an ageing population. Yet in the past three years, it has already cut £36million from its budget.
As one council insider said: “Croydon has an ageing population, with many older and disabled residents dependent on the services provided by the local authority. We fear it won’t be long before we hear again that ghastly phrase, of ‘managing demand’.
“Basically, finding ways to duck out of the council’s legal and moral responsibilities to save a few quid.”
On Newton’s website, they say, “The volume and complexity of demand, coupled with shrinking budgets, can make it feel like there’s no choice but to reduce service provision.”
Consultants like Newton never come cheap.
And when Newton finished their work, they managed to find… £1million-worth of savings. Trebles all-round!
Our council sources firmly expect the same to happen here. “It won’t be the first time there’s been a mugging in central Croydon,” said our cynical council staff member.
If Newton are to cost Perry’s Tory council £1million, the two other “partners” – another council euphemism, this one meaning “leeches” – will almost certainly demand a similar-sized fee.
In an email to council staff yesterday, Kerswell wrote: “We’re embarking on one of the biggest, if not the biggest transformation plans in local government and for that we need external help,” which sort of suggests that she admits that she and the large team of six-figure-salaried directors are not up to the task themselves.
“We have appointed Boston Consulting Group, a global firm with an expertise in digital innovation in the public and private sectors, to support the council over the next few months to develop a new operating model.”
Massachusetts-based BCG is regarded as one of the Big Three management consulting firms, along with McKinseys and Bain and Company, and have a fairly chequered record over their work around the globe, including in Angola and Saudi Arabia. Not that such trifling considerations as human rights issues and use of off-shore tax havens is likely to bother Perry or Kerswell much.
“Newton, a transformation delivery partner to local authority people services, is already working with Adult Social Care and Health,” Kerswell’s note to her staff continued.
“Impower, experts in public sector change, will be supporting Children Young People and Education.”
But as with Newton, Impower’s track record working with local authorities, especially in the realm of “managing demand”, in their case for SEND – special educational needs and disability – has been less-than-stellar.
Undaunted, Kerswell appears to be on a mission to transfer as much public money into the bank accounts of profit-driven private companies… sorry, “partners”… as quickly as she can.
Kerswell wrote: “Our partners are all taking a forensic look at how we do things in their specialist areas, talking in-depth to staff, residents, partner organisations including the [voluntary community and faith sector] and will develop new ways of working.” Those are our italics.
These “new ways” will undoubtedly include “longer”, “harder” and with “fewer staff”. All the while delivering fewer services to the residents of Croydon, who now pay the second highest Council Tax in London.
“We’ve set out our objective to become the most cost-effective and efficient council in London, putting our residents first and delivering excellent customer service – our partners will help us get there,” Kerswell said.
Or to paraphrase: “spend less do less”.
After 10 years of austerity policies from central government which had already shrunk Croydon’s annual spending by at least 20%, since 2020, another £137million has been cut from the borough’s operating budget, with a further £30million planned for 2024-2025.
Mayor Perry, meanwhile, appears to have abandoned any pretence to “fix the council’s finances” by getting some kind of settlement – a write-off of some of the council’s debt – from central government.
‘More incremental cuts are not the answer’
Kerswell’s staff email went into further detail.
“To become financially sustainable and offer our residents the best possible value for money, we need to reduce spending and do more with less. We know how hard you are working, and we are clear, from our conversations with you, that more incremental cuts are not the answer – quite simply, we must fundamentally change the way the council operates.
‘Dedicated webinar’: the council’s demoralised staff will be looking forward to their appointment with CEO Katherine Kerswell on Thursday
“We do not underestimate what has already been achieved – we should all be really proud of what we’ve managed to do so far, from making huge savings, to delivering major improvements right across the organisation. But we do need to go further.
“Our partners will offer fresh eyes, additional expertise and can draw on what they have achieved with other organisations.” Try not to laugh.
“This is a real opportunity for us all to learn and help come up with radical new ideas for the council.”
Kerswell added one further, suitably craven note: “Finally, if our partner colleagues get in touch with you… or you see them in our buildings, please join me in making them feel welcome.”
Council staff have been promised a “dedicated webinar” (not just any old webinar, you know) held on Thursday to explain away all their concerns.
For Croydon’s long-suffering residents, they got a press release this morning, which was a little lighter on the grim detail of what the leaches/consultants are likely to come up with.
“Some of the council’s costs, such as children’s and adults social care, remain among the highest in London. This is not financially sustainable for the future – and this is why the council needs radical change,” the public were advised today.
Kerswell hints at how Boston Consulting – big fans of using AI – will take the council’s existing “digital first” approach – meaning the public rarely get a chance to actually engage directly with a council employee – even further. What Kerswell describes as “making better use of technology to deliver services”, and “offer excellent customer care”.
Which would make a change.
A D V E R T I S E M E N T
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