Croydon Council is bankrupt. Since 2014, the Labour council has failed to manage the budget properly and has now had to issue a section 114 notice.
But what does this actually mean for services in Shirley?
The short answer is: we don’t fully know yet. The council is hoping to get an emergency bailout from the government. But they have to prove they can balance the books first. Until they’ve written a balanced budget we won’t know exactly what they’re going to cut, or what extra charges they are going to introduce.
Croydon can now only spend on “statutory services”. These include adult and children’s social services, road maintenance, bin collections and some other basic services. However, it is not yet clear at what level the council has to maintain these services. For example:
- Shirley library is under threat - the council has to maintain some kind of library service in Croydon. But they could pull it right back to just one library for the whole borough. Sadly for us, Shirley library is under review. Because of the bankruptcy crisis, it may never reopen.
- We are likely to see more potholes - the council has to maintain roads. But they are cutting the budget and promising only to maintain roads to the “minimum safest levels.” This may mean that most potholes do not get repaired unless they pose a really pressing safety risk.
- Free bulky waste collections have been cut - there will be some changes to bin collections. While essential services have to remain, the council has already decided to start charging for bulky waste collections.
- Parking in Shirley will become more expensive – the council wants to raise an additional £3million from parking charges. To facilitate this, three parking charge increases are going to hit on 1st January.
- Councillors can no longer support local charities – in previous years, the Shirley councillors were given a small pot of money to spend on good local causes. We have been able to help the food bank, Shirley Neighbourhood Care, Addiscombe Girls and Boys Club and many other great causes. Sadly, we have now had that money taken away.
We deeply regret that the council finds itself in this position. Labour has failed to balance the books for several years. Had they made reductions gradually over a number of years, the worst consequences could have been mitigated. Now the axe will fall swiftly and savagely.
