Published: 11th Nov 2020

Croydon Council has issued a section 114 notice as it struggles to get its finances back under control. The notice will mean all new non-essential spending at the London borough will be stopped while an emergency budget is drawn up to find further savings in this and the coming years. In a letter to councillors, finance director Lisa Taylor has outlined the serious issues facing the council including a potential budget shortfall in the current financial year of around £66m. The section 114 notice comes as the council prepares to publish its action plan to tackle a range of governance and financial issues raised in last month’s public interest report, which will be debated by councillors on 19 November. The report found the council’s approach to borrowing and investments had exposed the ‘council and future generations of taxpayers to significant financial risk’. It also revealed London borough has borrowed £545m … (To read the full article, subscribe below)