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Big news today about Croydon Council issuing a Section 114 notice- effectively declaring itself bankrupt 
https://www.bbc.co.uk/news/uk-england-london-54897296
https://www.bbc.co.uk/news/uk-england-london-54897296
Croydon is not the first council to go bust and it won’t be the last.
The first was Conservative Northamptonshire County Council in 2018 https://www.theguardian.com/society/2018/nov/29/tory-run-northamptonshire-county-council-bailed-out-by-government
The first was Conservative Northamptonshire County Council in 2018 https://www.theguardian.com/society/2018/nov/29/tory-run-northamptonshire-county-council-bailed-out-by-government
It won’t be the last because councils have suffered huge austerity cuts to their funding from central govt (nb council tax doesn't cover much of the services councils provide).
Councils in England are, in 2020, spending ÂŁ7.8bn a year less on key services than they did in 2010.
Councils in England are, in 2020, spending ÂŁ7.8bn a year less on key services than they did in 2010.
This austerity was a political choice
At the same time as cutting council budgets, the Tory Govt gave away ÂŁbns in tax cuts to the richest and corporations.
It meant huge cuts to social care, children’s services, libraries, weekly bin collections (remember those?), libraries, etc
At the same time as cutting council budgets, the Tory Govt gave away ÂŁbns in tax cuts to the richest and corporations.
It meant huge cuts to social care, children’s services, libraries, weekly bin collections (remember those?), libraries, etc
These council cuts have not been evenly distributed either …
The UK’s most deprived metropolitan areas have shouldered the burden of austerity while some more prosperous counties have seen increases https://www.theguardian.com/society/2019/nov/24/deprived-urban-areas-shoulder-burden-of-funding-cuts
The UK’s most deprived metropolitan areas have shouldered the burden of austerity while some more prosperous counties have seen increases https://www.theguardian.com/society/2019/nov/24/deprived-urban-areas-shoulder-burden-of-funding-cuts
And that means Tory councils have suffered far smaller cuts than Labour ones. The average cut in spending power is 34% for a Labour council but only 24% for a Tory council according to Guardian analysis https://www.theguardian.com/business/2020/jun/21/exclusive-labour-councils-in-england-hit-harder-by-austerity-than-tory-areas
But back to Croydon (both urban and Labour).
The council has lost 76% of its central government funding since 2010. It has been setup to fail.
The council has lost 76% of its central government funding since 2010. It has been setup to fail.
That’s not to say mistakes have not been made in Croydon. This external auditors report shows they have.
But those mistakes have been made in the context of debilitating cuts. https://www.croydon.gov.uk/democracy/budgets/report-in-the-public-interest?utm_campaign=redirect&utm_medium=alias&utm_source=publicinterest
But those mistakes have been made in the context of debilitating cuts. https://www.croydon.gov.uk/democracy/budgets/report-in-the-public-interest?utm_campaign=redirect&utm_medium=alias&utm_source=publicinterest
See also this very good thread by ex-Croydon Advertiser and now @TBIJ journo @Gareth_Davies09 https://twitter.com/Gareth_Davies09/status/1326547902374703104?s=20
