"Croydon Council remains in a position of "unsustainable" finances and must urgently act to reduce its operating costs and long-term debt, according to a new report. Independent auditors issued a rare statutory recommendation to the south London council a formal warning requiring urgent action because "arrangements to achieve financial sustainability have deteriorated". Some positives were also found - how the pension fund is managed, improvements to its housing service and progress in dealing with housing complaints."
"The government sent in its own team to take control of the council in August after it faced bankruptcy three times in the past five years. Croydon Council's finances is still relying on financial support from central government. The amount lent to the authority has sharply risen from 51m to 136m in one year. Concerns have been raised about how these debts will impact local residents and services."
Croydon Council is in an unsustainable financial position and must urgently reduce operating costs and long-term debt. Independent auditors issued a statutory recommendation warning that arrangements to achieve financial sustainability have deteriorated. The council received praise for pension fund management, housing service improvements, and progress on housing complaints. The government intervened in August and appointed commissioners after the council faced bankruptcy threats three times in five years. Government loans to the council rose sharply from £51m to £136m in one year, increasing concern over impacts on residents and services. Appointed commissioners have powers over finances and senior staff appointments. Auditors warned the council did not achieve its exit strategy without a viable debt solution.
Read at www.bbc.com
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