London news Croydon Council 'will go bankrupt' unless the government agrees to bail it out Uk news
MetiNews.Com - It's currently in emergency talks with the Ministry of Housing Communities and Local Government
Breaking News ! Sign up to FREE email alerts from MyLondon - MySouthLondon NewsSubscribeWhen you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.Thank you for subscribingSee ourprivacy noticeInvalid EmailIf Croydon Council cannot get a bailout from central government it could have to declare bankruptcy, its finance chief has said. The latest figures show that the council is facing a £50.3 million overspend and therefore needs to make immediate savings. With just £10.2 million in reserves the council has now decided to go to the Ministry of Housing Communities and Local Government (MHCLG) to ask for help.
So far the council has identified £27.9m of urgent savings - this includes a 15 per cent reduction in staff numbers, expected to save £2m. The council also hopes that increased parking charges from January 2021 will generate £1m more cash by the end of the financial year. And free bulky waste collections will stop, to be replaced with a charge of £31 for up to three items and £51 for four to six items. But despite this, the council still faces a £22.4m budget gap which the council hopes will be plugged by formally asking the government for a 'Capitalisation Direction'. At a cabinet meeting on Monday (September 21) the council's director of finance, Lisa Taylor, said that if the budget cannot be balanced she will have to issue a Section 114 notice - stopping any new expenditure and essentially declaring bankruptcy. Presenting the Croydon Renewal Plan, she said: "If at any time I do not feel that these plans are developing at the right pace or are not deliverable I will have no choice but to issue a section 114 notice.
Source = MetiNews.Com