Commons Sense

House of Commons · Written Ministerial Statement

Local Government Best Value

12 June 2025 · Ministry of Housing, Communities and Local Government

Proposed by Jim McMahon Lab Co-op Oldham West, Chadderton and Royton

Local Government

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The London Borough of Croydon is experiencing financial distress and is not complying with its Best Value Duty.
  • A Commissioner-led model of statutory intervention is proposed until July 2027 to address the Council's non-compliance.
  • Interested parties are invited to submit representations by June 25th for consideration.

Issue summary

The statement addresses the financial distress and non-compliance with Best Value Duty by the London Borough of Croydon.

Action requested

I am proposing to escalate the statutory intervention to a Commissioner-led model until July 2027, with a review after twelve months, to ensure the Council's compliance with its Best Value Duty. I invite representations from interested parties by June 25th.

Key facts

  • The London Borough of Croydon’s General Fund debt is around £1.4 billion.
  • Exceptional Financial Support (EFS) for 2025-26 has increased to £136m, up from £38m granted in 2024-25.
  • Since March 2021, Croydon has received approximately £553m in total EFS.
  • The Council's Stabilisation Plan is being developed but does not yet provide a concrete plan to achieve the necessary efficiencies and transformation.
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