The government today confirmed that it will be sending in a team of Commissioners to take over the running of Croydon Council, after having lost patience with the borough’s Mayor Jason Perry and the executive leadership team under chief exec Katherine Kerswell.
Local government minister Jim McMahon made another statement to the House this afternoon, this time concerning a veritable rogues’ gallery of basketcase councils: Thurrock, Dudley and Liverpool.
But Croydon was top of his agenda.
McMahon said that he had received 35 representations, many of them from Jason Perry’s mates, over his proposal to appoint Commissioners. But he said: “I am satisfied that the council is failing to comply with its Best Value Duty in relation to continuous improvement, leadership and use of resources.”
Best value: local government minister Jim McMahon
McMahon had expressed concerns about Croydon’s leadership in his statement a month ago.
“I have concluded that it is both necessary and expedient for me to exercise powers in the Local Government Act 1999.”
With the appointment of the improvement and assurance panel due to expire within days, Commissioners have now been appointed to extend the government’s intervention until July 20, 2027.
The Commissioners named today have significant experience in running south London borough councils: Ged Curran, who was CEO at Merton for 17 years; former Bexley chief Jackie Belton; and current chief executive at Greenwich, Debbie Warren.
Inside Croydon understands that a political adviser is also to be appointed, Abi Brown, a former Conservative leader at Stoke council.
Croydon has debts of £1.4billion, in what is widely viewed to be an “unsustainable” position, while the improvement panel, which had been appointed in 2021 by the previous government, had said in its final report that spending at the council under Mayor Perry and CEO Kerswell was “runaway”.
Lead commissioner: Ged Curran
The Commissioners may need to arrive at Fisher’s Folly with some pre-agreed scheme for debt rescheduling or write-off in order to staunch the cash-strapped council’s annual spend on debt servicing, which has reached more than £60million per annum.
McMahon’s statement said: “Croydon remains one of the most financially distressed councils in the country. Failing to change course would condemn Croydon’s residents to a worsening position without a recovery strategy.
“I am satisfied that the scale of the financial difficulties facing Croydon, the failure of the council to adequately respond to these difficulties and the assurance required moving forward means that a short and sharp reset, with fast action, is required to shift the dial on the council’s recovery.
“I believe this is best achieved by escalating the statutory intervention to a Commissioner-led model to ensure the council can achieve sustained change at the pace needed.”
McMahon’s intervention package includes “specific actions the council is required to take”.
“I am confident that his package will address the issues identified and is necessary for the council to secure compliance with its Best Value Duty.”
McMahon said of his appointees, “I am confident that their extensive knowledge and experience will help deliver the necessary improvements for Croydon.” Though this sounds very familiar to the ministerial messaging when the improvement panel, of similarly knowledgable and experienced local authority peeps, was installed five years ago.
McMahon has ordered that Croydon should “continue to develop and implement” Kerswell’s Stabilisation Plan “to the satisfaction of Commissioners”.
The council is also to co-operate fully with the Commissioners “and take any reasonable action within the authority’s functions to prevent further failure”.
On the spot: CEO Katherine Kerswell
McMahon said: “I expect the council to drive its own improvement with the support, challenge and advice from the Commissioners.”
This will include “scrutiny of strategic decision-making, oversight of strategic financial management and decision-making, and the appointment, dismissal and performance management of senior and statutory officer positions”.
McMahon said: “The Commissioners’ appointments and directions take effect from today.
“The Commissioners will provide their first report in six months, with a second report before summer 2026 and further reports every six months or as agreed with the Commissioners.
“I will review the directions and Commissioners’ roles after 12 months, to ensure that Croydon has the support required to accelerate recovery and protect the public purse.
“Subject to clear and sustained evidence of improvement, certain functions may be returned to the council ahead of the expiration of the directions.”
Our loyal reader will already know who will be picking up the price of failure.
“As with other statutory interventions led by my department, the council will meet the costs of the Commissioners and provide reasonable amenities and services and administrative support… I am assured this provides value for money given the expertise being brought and the scale of the challenge.”
Read more: Meet the Commissioners: council experts sent to save Croydon
Read more: Mayor coming under pressure to sack council CEO Kerswell
Read more: From tantrum to grovel, Perry shifts posture for Commissioners
Read more: Panicked Perry admitted to Rayner: I can’t balance the budget
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