In march, Croydon declared bankrupcy , for the third time in two years. This prompted a 15 pc council tax rise and the central government had to write off millions in loans given to the council . Croydon says it faces ‘existential question’ after asking ministers to write off £1.3bn of debt.
Perry added: “The previous administration has left a legacy of unprecedented financial mismanagement, toxic bad debt and a lack of governance and transparency that shames Croydon and continues to have a long-lasting impact on the sustainability of our council.”
The council, then under Labour control, first went bust in November 2020, after its finances spun out of control following a string of risky property investments, and overspending on social care. Subsequent reports identified that it suffered from chaotic leadership and mismanagement.
Croydon Tory leadership, in place since May, has been carrying out an “opening the books” exercise to ascertain the true scale of the council’s finances. This has uncovered a series of previously unidentified accounting errors and historic debts adding £48m to costs next year.