Dan Peters 10 November 2020

Croydon issues Section 114 notice

Crisis-hit Croydon LBC has issued a Section 114 notice after extra spending controls proved not to be enough.

The order bans all new expenditure, with the exception of safeguarding vulnerable people and statutory services.

Croydon had been expected to apply later this month to the Ministry of Housing, Communities and Local Government (MHCLG) for a capitalisation direction, enabling it to borrow money to cover a revenue shortfall of £22m, but the council still faced a structural deficit, a potential budget shortfall in the current financial year of around £66m and £47m of cuts next year.

In the wake of a public interest report from auditors, the serious financial position facing the council meant it could no longer avoid a s114.

Croydon’s new leader, Cllr Hamida Ali, said: 'The COVID-19 crisis and a decade of austerity have had a major impact on our finances but it’s clear the council has also made mistakes and I am committed to fixing that.

'We're not going to fix these problems overnight and there will be difficult decisions ahead.'

The last s114 notice was issued by Northamptonshire CC more than two years ago.

For more on this story visit The MJ

SIGN UP
For your free daily news bulletin
Highways jobs

Grounds Maintenance & Street Cleansing Manager

Essex County Council
Up to £20.60 per hour
Grounds Maintenance & Street Cleansing Operative Manager Full-Time, Temporary*37 Hours per Week£20.60 per hour* Closing Date
Recuriter: Essex County Council

Director of People

Bolton Cares
£80,287
Bolton Cares is on an exciting journey of transformation and growth and we’re looking for a dynamic, people-focused leader to help shape our future. Bolton, Greater Manchester
Recuriter: Bolton Cares

Director of Care

Bolton Cares
£81,974
Bolton Cares is entering an exciting new chapter and we’re looking for a visionary leader to help shape it. Bolton, Greater Manchester
Recuriter: Bolton Cares

Director of Asset Investment & Growth

Bournville Village Trust
£115,000
A new chapter in a legacy that’s over 125 years in the making. Bournville, Birmingham
Recuriter: Bournville Village Trust

Assistant Director – Integrated Commissioning and Contracts

Suffolk County Council
£85,289 - £102,448 per annum
We are seeking a dynamic and strategic Assistant Director Suffolk
Recuriter: Suffolk County Council
Linkedin Banner