Croydon Council to make cuts to services to save £30m

Croydon Council faces a £1.6bn debt

Croydon Council is to make cuts to social care services as it attempts to save £30m and balance its budget next year.

The proposals, if approved would see the south London council cut £5m from adult social care and £4m from children's services.

A 5% increase to council tax would also have to be made after a 15% rise last year.

The council faces a £1.6bn debt and needs to pay £47m a year to pay it off.

Last year, the authority said it could not balance its budget and was forced to issue a Section 114 notice - which puts council spending in the hands of central government as loans are negotiated.

It was the third time the council had declared it was effectively bankrupt.

The council had asked to write off £540m and requested a £38m loan but it now no longer faces Section 114 restrictions, regaining council financial decisions.

It estimates it can raise about £100m by selling off 18 properties it owns in the coming years.

• Council declared bankrupt for third time

• Council budgets on 'knife edge' as shortfall rises

• Bailed-out council's finances 'built on sand'

Directly-elected Conservative mayor Jason Perry said of the proposals: "We are making strong progress and Croydon is undoubtedly in a better place than last year, but the council is still facing real challenges," he said.

Conservative mayor Jason Perry wants residents to share their views about the budget proposals

Mr Perry urged members of the public to "get involved" and share their views.

The authority first declared bankruptcy in 2020 and was given a £120m bailout loan by central government.

Since the first bankruptcy filing, the council has made about £90m in savings and £50m in asset sales and has proposals to save £44m during the 2023-24 financial year.

The public consultation ends on 19 December.

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