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Croydon faces ongoing turmoil as ministry rules out long-term support


Croydon LBC is facing significant challenges in setting out a medium term financial strategy, with the government indicating it will not at this stage make capitalisation directions beyond 2021-22, and yet to confirm whether it will grant the council this borrowing flexibility at all.
The stricken council, which issued a section 114 notice in December because it was unable to set a balanced budget, has applied to the Ministry of Housing, Communities & Local Government (MHCLG) for a £150m capitalisation direction allowing it to borrow for revenue spending.
The request is for £70m this financial year, £50m next year and £25m and £5m respectively for the following two years. ....

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Croydon review finds officers 'did not assert their powers' | Local Government Chronicle (LGC)


Croydon review finds officers ‘did not assert their powers’
Croydon LBC’s statutory officers were inexperienced and “did not assert their powers” against an “inner circle” of the former leader and cabinet members, the government’s rapid review into the council has found.
Published this afternoon, the review warns there is “no credible alternative” to the £150m capitalisation direction the council is seeking to bring its books back into balance this year and next, although it acknowledges the scale of recent governance failures at the south London borough mean this would not be without risk.
In response to the review, communities secretary Robert Jenrick has appointed an improvement and assurance panel, to be chaired by Tony McCardle, the Northamptonshire CC commissioner. LGC has been told this board will make a recommendation by the end of the week on whether the government should grant the direction which would allow the council to borrow for reve ....

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