This post was first published by Croydon Advertiser on 29/09/2018.
Croydon Council needs to find £26 million in savings to balance books
Alternatively, the council can raise additional income.
Croydon Council needs to find £26 million in savings in the next four years to balance its books.
The council’s cabinet agreed on a medium-term financial strategy (MTFS) on Monday night.
The strategy sets out the financial outlook of the council over the next four years.
It outlines how the council will tackle financial challenges, rather than provide a detailed budget for the next four years.
Cabinet member for finances and resources Councillor Simon Hall said: “In Croydon, we have a fast-growing population with all its benefits but, in terms of balancing the books, it provides challenges.”
He added that financial pressures on the council include funding adult social care and children’s services.
The children’s services department was put into special measures last year after it was rated inadequate so the council is now putting an extra £17 million into children’s services this year. The strategy assumes this funding will continue.
Cllr Hall said: “The assumptions we’ve had to make are, to a degree, being drawn up in a vacuum. In the end there are no concrete plans beyond April 2020 in terms of how local government will be funded.
“For example, with council tax we have made the assumption that taxation for local services will rise by 2% every year and there will continue to be an adult social care precept given the large demands in this area.
“What this does result in is over the four-year period is we need to find £26 million of savings or additional income to balance the books.”
This MTFS assumes that council tax will increase by a total of 4% in 2019/20.