Cash-strapped Croydon Council under fresh government review

Cash-strapped Croydon Council is facing a fresh government review amid claims of "irresponsible spending".

In August, the council became the first to seek emergency financial help from the government after the coronavirus lockdown, when it was announced Croydon faced a £65.4m overspend.

Since then its CEO and leader have both stepped down.

Secretary of State for Local Government Robert Jenrick said the situation in Croydon was "deeply concerning".

His comments come after a Public Interest Report published last week was highly critical of the Labour-run council's financial management and scrutiny of its spending and investments.

Croydon Council is on the brink of bankruptcy and is in the process of asking the government for a bailout of more than £20m, the Local Democracy Reporting Service said.

Mr Jenrick said a "rapid non-statutory review" would be carried out and he refused to rule out the government taking steps to intervene.

He added: "The situation at the London Borough of Croydon is... completely unacceptable - local people rightly deserve and expect better than this from their local council leaders.

"The Public Interest Report published this week is damning about the dysfunctional governance within Croydon Council, who have been entirely irresponsible with their spending and investments. "

The review will be led by Chris Wood who will be supported by financial reviewer Alan Gay, the government said.

Earlier this month Croydon's cabinet member for finance Simon Hall resigned from his role, while former council leader Tony Newman announced his departure a few days later.

Both resignations came two weeks after the pair survived a vote of no confidence proposed by the Conservative opposition.

CEO Jo Negrini announced in August that she would be stepping down.