The UK government is sending commissioners to run Croydon council until July 2027 due to its rapidly deteriorating finances, which are heading for effective bankruptcy for the fourth time since 2020. Local government minister Jim McMahon cited the council's high operating costs and rising debts, projected to reach over £1.9bn by 2029. Executive mayor Jason Perry has criticized the intervention, arguing the council has made significant savings and residents have suffered enough.
Government to intervene in Croydon council as report warns of ‘financial crisis’
Local governmentLondonEnglandPoliticsUK
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TL;DR: Key points with love ❤️The UK government is sending commissioners to run Croydon council until July 2027 due to its rapidly deteriorating finances, which are heading for effective bankruptcy for the fourth time since 2020. Local government minister Jim McMahon cited the council's high operating costs and rising debts, projected to reach over £1.9bn by 2029. Executive mayor Jason Perry has criticized the intervention, arguing the council has made significant savings and residents have suffered enough.
Trending- 1 Croydon council declared effective bankruptcy three times since 2020
- 2 2022: Last bankruptcy declaration, blamed on mismanagement, bad debt, lack of governance
- 3 Council tax raised by 15% after 2022 bankruptcy
- 4 Council received £553m in exceptional financial support from government since 2021
- 5 Council's current debts sit at £1.4bn
- 6 Report finds council finances 'deteriorating rapidly' and 'reaching a financial crisis'
- 7 Thursday: Jim McMahon announces government commissioners will run the council until July 2027
- 8 Jason Perry criticizes the intervention
- Government intervention in local governance
- Potential for brutal budget cuts and council tax hikes in Croydon
- Further financial strain on residents
- Criticism from local government leaders about insufficient central government funding
What: The UK government is sending commissioners to run Croydon council due to its severe financial crisis and rapid deterioration of finances.
When: Thursday (ministerial statement), until July 2027 (commissioners' term), since 2020 (council's financial issues), 2022 (last bankruptcy declaration), 2021 (start of government financial support), 2024-25 (previous financial support), next year (projected funding gap).
Where: Croydon, London, England, UK.
Why: A report found Croydon council's financial position 'deteriorating rapidly' and 'reaching a financial crisis,' with high operating costs, rising debts (£1.4bn currently, projected £1.9bn by 2029), and reliance on government support (£553m since 2021). The government believes a 'short and sharp reset' is needed.
How: Jim McMahon, minister for local government, announced the intervention, sending commissioners to run the council.