|>>|| No. 28775
Croydon Council ‘declares bankruptcy’ and bans spending with Section 114 notice
>It is the first time a local authority has issued a Section 114 since Northamptonshire County Council in 2018
>Croydon Council has effectively declared bankruptcy, just weeks after auditors accused the Labour-led authority of years of financial mismanagement.
>The council issued a Section 114 notice on Wednesday, barring all new spending except on safeguarding and statutory services.
>It is the first time a local authority has issued the notice since Northamptonshire County Council in 2018.
>Last month Croydon Council was placed under a government review after a damning report by auditors Grant Thornton found there had been “collective corporate blindness to both the seriousness of the financial position and the urgency with which actions needed to be taken”.
>The report revealed that warnings about the council’s parlous financial situation dating back to 2017/2018 had been effectively ignored.
It has started. When will Manchester and Birmingham fold? My brother-in-law works at Croydon Council, and he is shitting himself. I told him to polish his CV. He told me that the previous CEO was sacked and walked away with a half a million golden handshake a couple of months ago.