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Local Government Finance: Croydon
09 December 2020
Lead MP
David Simmonds
Debate Type
Adjournment Debate
Tags
Local Government
Other Contributors: 1
At a Glance
David Simmonds raised concerns about local government finance: croydon in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Member of Parliament raised concerns about the section 114 legal notice issued to Croydon Council, which halted all non-statutory expenditure. This was the first such notice in London in two decades. He highlighted that this situation is a sign of financial distress and emphasised the need for robust governance and effective oversight. Simmonds provided context on the impact of austerity measures and the role of capital borrowing in exacerbating Croydon's financial problems, while also drawing parallels with his experience as a councillor in Hillingdon. He called for assurance from the government that other London boroughs will not face similar issues due to mismanagement.
The intervention stressed the importance of addressing concerns about Croydon's financial management and urged for closer attention to finances in other local authorities.
Government Response
Minister Kelly Tolhurst responded by acknowledging the debate on the important issue of local government finance, particularly focusing on Croydon Council. She highlighted the support provided to councils through the spending review and detailed additional funding allocated specifically to Croydon, including over £49 million in various grants during the pandemic. The minister outlined the section 114 notices issued by Croydon's financial director due to budgetary pressures and emphasised that the council was independent of central government. She also mentioned an independent review team appointed to assess the situation and reported findings to the Secretary of State, who will respond accordingly. Tolhurst assured residents that services necessary for safeguarding vulnerable people would continue and that the Government would take a keen interest in Croydon's steps towards financial sustainability.
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