Commissioners say “more to do” as Croydon continues to struggle with deficit

The commissioner team was appointed in July 2025, following the final report from the Improvement and Assurance Panel, which had been working with the council since January 2021.

The panel was established in the wake of a set of section 114 notices, which were issued in light of the council’s £1.6bn debt.

Writing in their first report, which was handed to the Government in January 2026 and made public on Tuesday (24 March), the Commissioners said they "found much that works well within the council", pointing to "respectful" debate among members and good ratings for the local authority's adult social care services and children's services.

However, the Commissioners said work still needs to be done to put the council on a stable financial footing, and that Croydon continues to carry a high level of debt and to require Exceptional Financial Support.

The council has delivered around £167 million worth of savings and £210 million of capital receipts since 2021/22 in an attempt to improve its finances, but the report noted more work is required to tackle the deficit.

The Commissioners said that officers and members show a "clear commitment to Croydon and are working hard to resolve the challenging problems it faces".

It added: "In the period we have worked in Croydon, the council has taken some significant steps forward, in particular in clarifying its belief that it can do more to tackle its financial situation, its intention to take this forward and the identification of steps to do this.

"The clear recognition that the Transformation Programme is necessary but not sufficient to close the council’s deficit, and that delivery plans should be reviewed and reprioritised is also an important step forward.

"But there is more to do, in particular to take forward work to deliver savings beyond those to be made through the Transformation Programme, to create a robust governance framework to ensure the timely delivery of the Transformation Programme and to develop a high performance culture within the organisation."

Responding to the report, Local Government Minister Alison McGovern said it is "clear that delivery of the council’s transformation plan and associated savings is now essential to help move Croydon away from reliance on Exceptional Financial Support".

She added: "Whilst it is encouraging that the political and corporate leadership are demonstrating greater ownership of the challenges the council faces, it is now vital that both members and officers drive forward at pace the necessary changes to help return longer term financial sustainability and improved service delivery to Croydon."

Croydon's Executive Mayor, Jason Perry, meanwhile said: “We have achieved good ratings for adult and children’s social care, we have raised standards in council homes and our auditors confirm we have strengthened financial management.

“We have achieved this whilst saving millions every year by cutting waste, making services run more efficiently and taking a preventative approach."

He added: “But I am very clear that more needs to be done. The council’s financial problems have deep roots. Whilst we cannot tackle the debt burden I inherited alone, there is more we can do. We need to finish the job.

“I am pleased that the Commissioner team have felt welcomed at Croydon and I want to thank them all for their support to date. I remain committed to working with them, my leadership team and all of our officers, to achieve the best possible outcome for the people of Croydon.”

Adam Carey