Croydon Council has today issued a section 114 notice due to the severe ongoing financial challenges facing the authority.

This significant step will mean all new non-essential spending will be stopped while an emergency budget is drawn up to find further savings in this and the coming years.

In a letter to councillors, finance director Lisa Taylor outlined the serious issues facing the council including a potential budget shortfall in the current financial year of around £66m.

Issuing the notice is recognition that despite all efforts to do so the council cannot now balance its budget this year, which it is required to do by law.

The council had previously acknowledged its worsening financial situation, and has set in train a number of improvement and savings programmes to help put it back on a stable financial footing.

It is also in talks with the government about the financial support necessary to balance the budget and transform the council.

What does the S114 notice mean for council services?

It means that no new expenditure is permitted, with the exception of that funding statutory services, including safeguarding vulnerable people, although existing commitments and contracts will continue to be honoured.

Council officers must therefore carry out their duties in line with contractual obligations and to acceptable standards, while being aware of the financial situation. Any spending that is not essential or which can be postponed should not take place and essential spend will be monitored.

The only allowable expenditure permitted under an emergency protocol would include the following categories:

• existing staff payroll and pension costs
• expenditure on goods and services which have already been received
• expenditure required to deliver the council’s provision of statutory services at a minimum possible level
• urgent expenditure required to safeguard vulnerable citizens
• expenditure required through existing legal agreements and contracts
• expenditure funded through ring-fenced grants
• expenditure necessary to achieve value for money or mitigate additional in-year costs

The council will have 21 days from the issue of a Section 114 notice to discuss the implications at a meeting of full council.

Croydon Council have responded to their voters’ legitimate petition containing over 17,000 valid signatures and calling for the people to be given the choice next May.

The Council has the legal power to call a referendum on 6 May, the same day as the London Mayor and Assembly elections. That is the obvious day to have it because the extra cost would be minimal and if decided, a Mayor would be elected in May 2022 when the local Council elections take place.

The law gives the people the right to a referendum if 5% of voters demand one. In Croydon 5% is 13,788 voters. Although over 17,000 voters signed the petition, the Council Leadership refuses to use their legal powers to call the referendum in May.

It’s time for all Councillors to stand up for the people and make sure they are given the choice they demand in May 2021.

We are of course disappointed if not surprised by this decision.  We are clarifying some points with the Council and will keep you informed as events proceed.  We remain confident that sooner or later, the referendum will happen, and the people of Croydon will choose to have a mayor.

Getting the message out

We are still getting leaflets out in target areas.  We have the following leafleting sessions over the next couple of weeks in South Norwood/Selhurst.  Please join us in getting our leaflets out.  All sessions will socially distanced and we ask people to come and collect leaflets and maps, then go off in small groups.  We will also ask you to later confirm what roads you completed.

Sessions:
Tuesday 22-Sep 6:45pm
Meeting outside: The Clifton Arms  21 Clifton Rd, Selhurst, London SE25 6NJ

Sunday 27-Sep 11am
Meeting outside: The Cherry Tree  32 Station Rd, South Norwood, London SE25 5AG

Wednesday 30-Sep 6:45pm
Meeting outside: The Cherry Tree  32 Station Rd, South Norwood, London SE25 5AG

If you can, please come along and help us get the message out to the people of Croydon that we need a Democratically Elected Mayor!