Croydon Council asks for £136m government bailout

Croydon Council became the first London borough in two decades to effectively go “bankrupt” back in 2020.

It went on to declare bankruptcy for a third time in November 2022.

Perry had promised to address the borough’s £1.4bn debt burden when he was elected in 2023.

Recent cuts include the closure of four libraries in November and a restructure of the authority’s Youth Engagement Team.

Croydon’s Labour group leader Stuart King said: “Residents are paying more but getting less.”

“Under Mayor Perry, finances are getting significantly worse, and residents should not bear the cost of his failures,” he added.

Perry defended his approach, stating that the council must modernise to become more efficient.

He outlined plans to overhaul council operations, including using digital tools and partnering with charities to deliver services more effectively.

While these local efforts are intended to save £27.7m annually by 2028, they will not be enough to make Croydon financially sustainable.