Croydon Council has today (Wednesday) issued a second Section 114 notice which is a continuation from the one issued on 11 November 2020 due to the ongoing financial crisis it faces.
In a letter to inform councillors of her decision to issue this notice, finance director Lisa Taylor set out the ongoing challenges for Croydon including a potential budget shortfall in this current financial year of £66m.
Croydon has been clear that it will need financial support from government if it is to balance the budget this year and to help it rebuild a financially sustainable council by 2024.
Positive talks with the Ministry of Housing, Communities and Local Government (MHCLG) are ongoing, with the council planning to formally submit its request for help later this month.
By issuing a Section 114 notice, the council is required by law to consider the report within a 21-day time frame, and decide whether it agrees with the views in the report and what action if any it proposes to take. If the budget remains unbalanced it must then issue another notice.
For Croydon this means that it will continue to only spend on essential services with a daily spending control panel making sure this happens.
The council will continue to deliver key services, protect and help vulnerable residents and honour its existing contracts.