Minister Jim McMahon has suggested escalating Croydon LBC's statutory intervention to a commissioner-led model to ensure it can ‘achieve sustained change at the pace needed'.
Local government minister McMahon said the council was failing to comply with its Best Value duty, with its general fund debt projected to rise from £1.4bn to more than £1.9bn by 2029 and its financial position ‘deteriorating rapidly'.
However, the latest report of Croydon's improvement and assurance panel said the authority had failed to ‘provide a concrete plan to achieve the efficiencies and transformation the council has committed to' and its deteriorating position was ‘not being gripped and tackled adequately'.
In a written ministerial statement, McMahon said: ‘Poor financial information and forecasting, and a lack of controls, have contributed to the deterioration of the financial position.
‘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.
‘Failing to change course would condemn Croydon's residents to a worsening position without an exit strategy.'
Executive mayor of Croydon, Jason Perry, said: ‘If at any time the panel or Government felt there was any action the council should be taking and was not, they had the power to instruct us. They never did.
‘Despite all the improvements that have been delivered by the council and its staff, it appears the Government wants to centralise control into the hands of commissioners.
‘In my view, the residents of Croydon have felt enough pain.'
