Local Government Secretary Robert Jenrick yesterday announced measures to address the serious failures at Labour-run Croydon Council to begin turning it around so it can deliver value for money for the local residents.
An Improvement and Assurance Panel, comprising local government and finance experts, has been appointed to support and challenge Croydon’s improvement progress and make regular reports to the Secretary of State.
The measures come in response to a rapid non-statutory review commissioned in October to examine the Council’s overall governance, culture and risk management following the announcement that it would seek exceptional financial support from Ministry of Housing, Communities and Local Government.
Councils have a duty to manage taxpayers’ money responsibly and it is right that they are held to account where they are found to have failed to do so. The review team, led by Chris Wood, found “significant failings in the leadership and management” at Croydon Council which had led to failures in identifying, escalating and addressing financial risk.
The report highlighted the Labour-run Council’s poor track record in managing budgets, poorly managed commercial ventures and low levels of reserves which caused significant issues.
Croydon Council has now submitted the next iteration of their Improvement Plan. This will be considered alongside the Panel’s findings and the council’s request for financial support.
Cllr Jason Perry, Leader of Croydon’s Conservative Councillors, said:
''It's clear from this unprecedented Government intervention that Labour has lost all credibility to run Croydon.
For years Croydon Conservatives have warned Labour of the risks they were taking with our borough. They refused to listen, accusing us of scaremongering and talking Croydon down. The truth was far worse than any of us predicted. With £15,000 of debt accrued every hour since 2014, they have doubled the Council’s debt to £1.5 billion and bankrupted Croydon.
''I welcome the decisive action that the Conservative Government has taken in appointing an expert panel to sort out Labour's mess - but let's be under no illusion: this situation was entirely avoidable. We will continue to hold this failing Labour administration to account for their terrible choices and bankrupting the borough.''
Local Government Secretary Rt Hon Robert Jenrick MP said:
''The rapid review into Croydon Council found serious failings in governance, financial strategy and commercial investments which have led to taxpayers and residents being severely let down over a number of years.
''This must end now, and I have appointed an expert panel to help the council urgently address the issues they face and deliver a comprehensive recovery plan. I will be monitoring progress closely and will not hesitate to take further action if necessary.''
In the event of a failure by the council to demonstrate significant progress, a more formal statutory intervention will be considered, including the appointment of commissioners.
The findings of the review have been published alongside the Local Government Secretary’s letter to lead reviewer Chris Wood and a letter appointing Tony McArdle as Chair of the Improvement Panel.
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