No cuts, no council tax hikes!
by Ben Goldstone, Croydon and Sutton Socialist Party
A recent report found that Croydon Council’s finances were “deteriorating rapidly”, which has led the minister for local government, Jim McMahon, to prepare sending in unelected commissioners to run the council until July 2027. This would be the third time that Croydon Council has effectively declared bankruptcy since 2020. The council’s debts currently stand at £1.4 billion, with McMahon saying this is expected to rise to more than £1.9 billion by 2029.
Photo: Berkay Kartav
Since 2021, the council has received about £553 million of exceptional financial support from the government. In 2022, the council blamed the financial situation on “unprecedented financial mismanagement, toxic bad debt, and a lack of governance and transparency”. The council was given special permission to undemocratically raise council tax by 15%. With the most recent council tax hikes, residents are paying 27% more than when Tory mayor Jason Perry came into office in 2022. Labour councillors aren’t innocent either — they abstained on that budget vote, allowing the 15% council tax rise through.
Perry reports the council has ‘saved’ £167 million over the past four years and has sold £130 million worth of assets, with plans to see a further £68 million this year. Croydon residents have been paying more and receiving less! Just look — recently, four libraries have closed and the council has cut its Youth Engagement Team.
Now, it will be a Labour government sending in commissioners, which will most likely lead to more services lost or privatised, and job losses. Croydon will also have to pay for the ‘privilege’ of having the commissioners in; last time this was to the tune of £900-£1,000 a day.
Instead of allowing this, councillors should refuse to make cuts and continue to provide much-needed services, taking a stand against the cuts commissioners. They should demand that the shortfall in the budget is provided by central government. This would motivate the local community, bring the unions on board, and pressure the government to find the funds for the services people in Croydon need. The government should also write off the debt. For inspiration, they just need to look to the Poplar councillors of 1921, and the Militant Liverpool councillors in the 1980s who fought back against Thatcher, showing that councils can resist cuts. And if councillors are unwilling to do this, then they should make way for those who are!