Government approves Croydon Council’s financial plan

Croydon council welcomed the government’s approval of a funding direction that will help balance this year’s budget and support the Borough of London’s plan to get its finances back on track.

UK Minister of State for Regional Growth and Local Government Luke Hall has written to the council to confirm he will authorize borrowing of £ 120million, of which £ 70million for fiscal 2020- 2021 and £ 50million for 2021-2022.

The government’s offer, which will assist Croydon over the next two years, is conditional on the board implementing its renewal plans at a steady pace and providing regular updates on progress to the Improvement Committee and insurance company appointed by the government.

The Croydon Council Renewal Plan is a major program that lists proposed savings, strengthens governance and financial practices, as well as finding new ways of working to put the borough on a more sustainable financial footing.

The council formally wrote to the government in December 2020 requesting funding guidance to cover unprecedented fiscal pressures until 2024.

A funding direction allows boards under fiscal pressure to charge income expenses to capital, which is then repaid over an extended period.

Commenting, Croydon Head of Council Councilor Hamida Ali said: “We welcome this positive move, reflecting the government’s confidence in our strong plans and our ability to turn around the finances of this council and transform its management. for the benefit of everyone in our borough.

“This means that we can now deliver a balanced budget and it gives us a solid foundation to focus on putting these plans for sustainable finances into practice over the next 12 months.

“We have a lot of work to do and our finances remain critical in the medium term, but we have already shown in the way we have responded to government advice and external reviews that we are serious about our financial situation, improving the way Croydon is run and provides good value services to our residents.