Croydon 'stuck in financial trap' amid plan to slash services and borrow more

Croydon 'stuck in financial trap' amid plan to slash services and borrow more

Exceptional Financial Support allows the council to use capital resources to fund day-to-day spending, but experts warn that the approach is unsustainable.

Croydon Council borrowing could reach £900m by 2030

Croydon expects to have borrowed a total of £900m from the government by 2030, according to its latest financial plans. The council’s growing reliance on Exceptional Financial Support (EFS) borrowing, which has been likened to taking payday loans, has led the council to consider asking for a £500m debt write-off as a last resort. In a strategy report, the council warns it is “difficult to see a route out of the EFS programme over the medium term…