CROYDON IN CRISIS: In its latest report to Michael Gove, the Government’s improvement panel reveals a £38m hole in cash-strapped council budgets for the next four years – and repeats plea for unprecedented half-a-billion pounds loan write-off

Cash-strapped: even the government’s appointees reckon it will need a Northern Rock-style debt write-off to fix Croydon’s problems
Croydon’s cash-strapped council was still lending tens of millions of pounds to Brick by Brick, its failed house-building company, as recently as the last financial year, an official report to the Government has confirmed.
The Department for Levelling Up, Housing and Communities has today released the latest report from Croydon’s improvement and assurance panel, the local authority experts the Tory Government appointed in 2021 after the council’s financial collapse.
Back in 2020, with soaring debts and a £63million hole in its budget, Croydon issued the first of three Section 114 notices – effective admission that it was unable to meet its legal duty to deliver a balanced budget.
But according to the report from improvement panel chair Tony McArdle, Croydon will be unable to balance its budgets in 2024-2025 and for the three following years without Government bail-outs of at least £38million each year through until 2028.
McArdle’s report was submitted to Secretary of State Michael Gove last October, but there is no mention of the four years of further capitalisation directions contained in the budget reports recently submitted by Executive Mayor Jason Perry to the council’s scrutiny committee. Continue reading →
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