The government has decided to deploy its own team to take charge of a council in south London that has faced bankruptcy on three occasions in the past five years.

According to local government minister Jim McMahon, the severity of Croydon Council’s financial challenges and “the council’s inadequate response to these challenges” prompted him to appoint commissioners.

These four commissioners will be granted authority over financial oversight and decision-making, including the “appointment, dismissal, and performance management” of senior council personnel.

Croydon’s Executive Mayor, Jason Perry, expressed his belief that the move to appoint commissioners is “not the right choice for Croydon and its citizens.”

Commissioners are brought in when a council fails to fulfil its responsibilities, especially concerning financial sustainability and the delivery of services.

McMahon emphasized that “a swift and decisive reset, coupled with rapid actions, is essential to facilitate the council’s recovery.”

In a statement delivered to Parliament, McMahon remarked: “Croydon is one of the most financially troubled councils in the nation.”

“Neglecting to alter the current trajectory would leave Croydon’s residents in an even more precarious situation without a plan for recovery.”

“I believe that escalating the statutory intervention to a commissioner-led framework is the most effective way to ensure that the council can implement meaningful changes at the necessary pace.”

The council is responsible for covering the expenses associated with the commissioners, including their fees.

The minister indicated that the council should continue to be the decision-making body, but under the supervision of the commissioners, who “will maintain proper standards and due process while advising the council on actions.”

Perry remarked: “This feels neither fair nor consistent, especially compared to the lower levels of intervention seen in other councils.”

“I refuse to let our residents bear the cost of past failures. I will reject any plans that jeopardize essential local services or lead to further council tax hikes beyond the limits set by the government.”

He also stated that the council would “collaborate constructively with the government-appointed team.”

Perry added: “We will appreciate their insights, challenges, and assistance while continuing to prioritize the interests of Croydon’s residents in all our decisions.”

In 2020, Croydon Council became the first London borough in twenty years to effectively declare “bankruptcy.”

It subsequently announced its third bankruptcy in November 2022.

After being elected in 2023, Perry committed to tackling the borough’s £1.4 billion debt issue.

Recent budget cuts have included the closure of four libraries in November 2024 and a reorganization of the Youth Engagement Team within the council.

Since 2022, council tax in Croydon has increased by over 26%.

The Conservative-led council attributes its financial woes to a rise in homelessness, increased demand for social care, and escalating costs for placements for children.