Croydon Council gets £120 million bailout
Croydon Town Hall Pic: Dr Neil Clifton
Croydon Council has been granted £120 million by the government, three months after the council went bankcrupt.
The sum, which was announced in the first week of March, will be split into £70 million for the 2020/21 financial year and £50 million for 2021/22.
Croydon Council issued a Section 114 notice declaring itself bankrupt on November 11, 2020.
The projected overspend is estimated at £96.5 million. The council cannot spend money on services it is not legally required to provide such as parks and community centres.
Croydon Council leader Hamida Ali said: “This means we can now put forward a balanced budget and it gives us a solid foundation to focus on putting those plans for sustainable finances into practice over the next 12 months.