At lunchtime today, Michael Gove, the Secretary of State for Levelling Up, Communities and Housing, dropped a written statement to the House of Commons – just before the start of the summer recess – on the progress, or otherwise, made in the last two years since the Government’s intervention over Croydon’s financial collapse.
Here is that statement in full:
Update on the Intervention in the London Borough of Croydon
On 16 March 2023, the Minister for Local Government updated the House on the work of Commissioners and Improvement Panels at three councils, including the London Borough of Croydon. Whilst acknowledging the significant steps that had already been taken by the Council over recent months, given the depth of the historical challenges and the extent of improvement required, that we were minded to move the existing Improvement and Assurance Panel, chaired by Tony McArdle OBE, to a statutory footing.
This proposal followed the evidence provided in the Improvement and Assurance Panel’s latest assessment that the Council under the leadership of Mayor Perry has made good progress in laying the foundations for its recovery. At the same time, historic issues continue to be unearthed at Croydon and their potential impact on the Council and the progress made to date cannot be underestimated, particularly given its continuing precarious financial position.
I concluded that the Authority was not meeting its Best Value Duty – a requirement set out in the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.
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