Local authority issues Section 114 notice amid Covid impact and claims of lax financial control and risky investments
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Labour-run Croydon council, in south London, has issued a notice – effectively the equivalent of bankruptcy – after saying it was unable to fill a £66m black hole in its budget in the wake of a financial crisis brought on by risky property investments and lax financial controls.
The council, which on Wednesday formally issued the Section 114 notice confirming it was unable to meet its legal duty to balance its books this year, said “severe ongoing financial challenges” had forced it to take the drastic step.
