Martin Ford 02 December 2020

Croydon issues second Section 114 notice

Croydon LBC has issued a second Section 114 notice, having failed to balance its budget without assistance from the Government.

Councillors were told in a meeting last night that Croydon still faced a shortfall of £66m at the end of the financial year, 21 days on from the chief finance officer Lisa Taylor issuing the a S114 notice for the first time.

It means another notice must be issued, banning non-essential spending for a further 21 days.

The council has pinned its hopes on agreeing a capitalisation direction with the Ministry of Housing, Communities and Local Government (MHCLG), as a report to the council stated it ‘does not have the required level of savings options or remedies available to it in order to balance its budget in 2020/21’.

A statement issued today by the council said: ‘Croydon has been clear that it will need financial support from government if it is to balance the budget this year and to help it rebuild a financially sustainable council by 2024.

‘Positive talks with MHCLG  are ongoing, with the council planning to formally submit its request for help later this month.’

It added: ‘The council will continue to deliver key services, protect and help vulnerable residents and honour its existing contracts.’

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