The Mayor of Croydon has firmly stated that the council is “not failing,” even as the possibility of a government takeover looms on the horizon.

Jason Perry, the executive mayor of the south London borough, has pledged to resist any imposition of tax increases or service reductions by commissioners, a position that opponents argue is undermined by his own leadership record.

The dispute intensified following a government announcement last month indicating its intention to potentially send in commissioners to take control of the financially struggling council.

Local government minister Jim McMahon cautioned that, without a significant change in strategy, Croydon risked descending into an even deeper crisis with “no clear exit.”

In a video released shortly after the government’s announcement, Perry criticized the proposal, claiming, “The government should support us rather than complicate matters further by adding to the distress in our borough.”

Tensions reached a boiling point at an “extraordinary council meeting” on Wednesday, which was convened by Labour councillors in light of the impending intervention.

Although some of the mayor’s resolute commentary garnered support, numerous councillors voiced concerns that his approach could hinder the council’s chances of negotiating a favorable resolution.

Labour opposition leader Stuart King acknowledged Perry’s frustrations but condemned his confrontational response.

“Engaging in a full-scale political assault on the government won’t increase our chances of obtaining the necessary deal,” he commented. “Your reaction was poorly timed and has harmed rather than improved Croydon’s situation.”

Recent figures have unveiled that the council exceeded its budget by £30 million last year, necessitating £136 million in exceptional financial aid to remain operational.

Additionally, the council is encumbered by £1.6 billion in legacy debt, which incurs an annual service cost of £70 million. This debt has reportedly escalated by £200 million over the last year.

Since issuing a Section 114 bankruptcy notice in 2020, Croydon has been under the scrutiny of the government’s Improvement and Assurance Panel (IAP).

While the IAP was established to offer oversight and challenge, McMahon’s latest report noted a “lack of urgency” during the intervention and cautioned that the council is nearing another financial crisis.

The report characterized Croydon’s continued dependence on emergency funding, which has reached a total of £553 million since 2021, as unsustainable.

Although McMahon assured a “short, sharp reset,” there have been no specific details regarding the powers commissioners would possess or the extent of their involvement.

Following his earlier video remarks, the mayor adopted a more accommodating tone during the intensely heated council meeting.

After the session, he spoke to the Local Democracy Reporting Service (LDRS), expressing his willingness to collaborate with commissioners, but stated emphatically: “If we reach a point where they suggest raising council tax above the cap or cutting services incrementally, I will resist those decisions.”

While there was a general consensus on the necessity to collaborate with future commissioners, opposition councillors were quick to remind the mayor that he had increased council tax to an unprecedented level and had initiated cuts to services such as libraries and youth programs during his tenure.

The Conservative-led council claims to have generated over £230 million in capital revenue, which includes £130 million from asset disposals, with an additional £68 million in sales projected for this year.

Yet, despite what Perry has termed “difficult choices,” the council’s financial shortfall continues to widen.

Many councillors now believe that only a complete government bailout could break Croydon’s cycle of debt, although such an action would be without precedent.

Perry mentioned that he regularly meets with government ministers, during which discussions about the need for a bailout frequently arise.

Labour’s mayoral candidate, Councillor Rowenna Davis, remarked, “To dismiss the necessity for commissioners is a shortsighted rejection of the financial peril we’re facing three years into your leadership.” She further stated that Perry’s criticisms of the intervention were “offensive” to those seeking to assist.

Croydon Council has formally opposed the proposal for commissioners in the ongoing consultation, with several local organizations also voicing their objections.

The consultation period will conclude on July 20, with additional information regarding the government’s next steps anticipated later this year.