Government appoints Croydon commissioners, despite protestations from London borough

The London borough's Mayor Jason Perry has meanwhile hit out against the move, describing it as "the wrong decision for Croydon and its residents".

In a written ministerial statement, McMahon said he had decided to forge ahead with the intervention after considering representations.

The minister said: "Croydon remains one of the most financially distressed councils in the country. Failing to change course would condemn Croydon's residents to a worsening position without a recovery strategy.

"I am satisfied that the scale of the financial difficulties facing Croydon, the failure of the council to adequately respond to these difficulties and the assurance required moving forward means that a short and sharp reset, with fast action, is required to shift the dial on the council's recovery."

He selected Gerard Curran, Debra Warren, Jackie Belton and Councillor Abi Brown OBE as commissioners.

McMahon issued directions under section 15(5) and 15(6) of the 1999 Act to implement the proposed intervention package, which will run until July 2027.

The directions require Croydon to continue to develop and implement the council's 'Stabilisation Plan' and transformation programme to the satisfaction of Commissioners.

They also require the council to fully co-operate with the Commissioners and take any reasonable action within the authority's functions to prevent further failure, as reasonably determined by the commissioners.

Some commissioners will have powers to exercise certain functions in order to secure the best value duty, which include issues relating to governance and scrutiny of decision making, and the appointment, dismissal and performance management of senior and statutory officer positions.

To support financial sustainability and enable transformation of the authority's operating model and services to deliver value for money and long-term financial resilience.

The escalation comes after the ninth and final report of the local authority's Improvement and Assurance Panel warned of a rapidly deteriorating financial position at the London borough.

Croydon's Mayor first voiced disappointment in June, when the Government proposed sending commissioners into the London borough.

At the time, Perry complained that "despite all the improvements that have been delivered by the council and its staff, it appears the Government wants to centralise control into the hands of commissioners".

In a statement responding to McMahon's decision to go ahead with the intervention, Perry said: "It does not feel fair and consistent in line with the lower levels of intervention placed on other councils."

He added: "In response to the Government's 'minded to' decision we submitted serious, credible proposals to address Croydon's challenges. It is deeply disappointing that neither these nor the council's substantial progress, including significant improvements to leadership, governance and culture, have been recognised."

The Mayor said the council will engage with the commissioner team constructively and will welcome their advice, challenge and support.

"However, let me be absolutely clear, I will not allow our residents to carry the cost of historic failure. I will not support any proposals that would destroy vital local services or impose further Council Tax increases above the Government cap."

The first commissioners' report will be published in six months. The minister will review the directions and commissioners' roles after 12 months.

Adam Carey