Dan Peters 17 September 2020

Croydon would have issued s114 'in normal circumstances'

Croydon LBC’s £49m total net forecast general fund overspend means it would have had to have issued a Section 114 notice in ‘normal circumstances,’ senior councillors have heard.

A report to a meeting of the council’s cabinet refused to rule out the issuing of a s114, with councillors warned it was an ‘ongoing risk’.

The report said work needed to ‘continue at pace’ and plans had to be ‘robust’ for Croydon to avoid the fate, with the council said to be taking ‘far-reaching and urgent action’.

It said the ‘bulk’ of the £49m overspend ‘could not have been reasonably foreseen at the time of setting the budget in March’ and the £24m in unringfenced COVID-19 funding had been ‘sporadic and inadequate’.

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