This week in Croydon:

Audit Committee to Review Governance and Financial Controls

The Audit & Governance Committee convened this week to discuss the council's internal controls, financial accounts, and overall governance. These discussions are crucial, especially given Croydon's recent financial difficulties, as they directly impact the council's ability to manage public funds and deliver essential services.

Annual Governance Statement Under Scrutiny

The committee was asked to review the draft Annual Governance Statement (AGS) 2024/25 ¹, a document that assesses the effectiveness of the council's internal control systems. The AGS highlights significant challenges, risks, and planned improvements. The committee was also scheduled to discuss the AGS Action Plan, the Local Code of Corporate Governance, and the Governance Framework.

• Improvement Plans: The supplementary agenda included a table detailing actions to address governance issues, such as implementing the Improvement & Assurance Panel Exit Strategy Action Plan 2023-25 ², and delivering on the Council Improvement Plan 2022-27.
• Transformation Programme: The supplementary agenda also referred to the 'Future Croydon' Transformation Programme (2024 – 2029) ³, and the need to deliver on the recommendations from the External Auditors Annual Report relating to financial sustainability, governance, and improving economy, efficiency and effectiveness.

Internal Audit Strategy and Plan

The committee was expected to review and approve the internal audit strategy and plan for 2025/26. This plan outlines the proposed audit work for the year, aligning with the Global Internal Audit Standards (GIAS) ⁴.

• Audit Scope: The plan was scheduled to cover key financial systems, corporate governance, and departmental operations.
• Revised Standards: The council's internal audit charter wasn't submitted alongside the strategy due to new global internal audit standards that came into effect on 1 April 2025. These updates shifted more responsibility onto the committee, making it necessary to revise its terms of reference before the charter could be formally approved.

Head of Internal Audit Report

The committee was scheduled to discuss the annual report from the Head of Internal Audit, detailing the work completed in 2024/25 and the overall level of assurance regarding the council's internal control environment. The report stated that the Interim Head of Internal Audit's opinion was that Internal Audit could provide Substantial Assurance in relation to the system of internal control, and that the internal controls within financial and non-financial systems operating throughout the year were satisfactory.

IT Controls Audit

The committee was scheduled to receive an update on the progress of the IT Controls Audit for 2023/24 and 2024/25. The report was expected to show the progress made to mitigate previously identified observations.

Target Operating Model

The committee was scheduled to receive an overview of the council's progress with the Target Operating Model (TOM) ⁵, governance, and risk.

• Consultant Involvement: The council worked with Boston Consulting Group between June and October 2024 to develop a new Target Operating Model, that was agreed at Cabinet in February 2025.
• Transformation Partner: The council had successfully concluded the procurement of a partner to provide a Transformation Management Office, and that the successful bidder was KPMG.

2023-24 Draft Annual Accounts

The committee was scheduled to discuss and approve the 2023-24 Statement of Accounts.

• Late Publication: The council was unable to comply with the deadline to publish its final accounts by 28 February 2025, and draft accounts were subsequently published on 2 June 2025.
• External Review: The council asked the Charted Institute of Public Finance and Accountancy (CIPFA) ⁶ to carry out a high-level review of the draft 2023-24 accounts for compliance against the code of practice.

The report pack included details of the progress on the implementation of recommendations from the External Auditors Annual Report relating to financial sustainability, governance, and improving economy, efficiency and effectiveness.

Link to meeting

Upcoming Meetings

• The Planning Sub-Committee on Thursday 14 August 2025 will review planning applications. Link to meeting

This week in Croydon:

Pension Fund Scrutiny Highlights Investment Strategy and Regulatory Compliance

The Croydon Council Pension Board met this week to discuss critical aspects of the pension fund's management, including investment pooling, regulatory compliance, and risk management. These decisions directly affect the retirement security of council employees and the financial health of the borough.

Navigating LGPS Reforms and Investment Pooling

The board discussed the government's response to the LGPS Fit for the Future consultation, which mandates stricter investment pooling and governance requirements for local government pension schemes (LGPS). Key points include:

• Investment Control: Funds retain investment strategy control but must delegate implementation to their pool.
• Local Focus: Local investments are defined as broadly local or regional, requiring pools to build local investment capabilities.
• Compliance Deadline: All fund assets must be managed by FCA-authorised pools.

These changes aim to enhance efficiency and investment returns, but also raise questions about local autonomy and investment choices. The board also received an update on the London CIV, the collective investment vehicle for London local authorities, noting that the fund had £424.3m invested in sub-funds managed by the LCIV.

McCloud Remedy Implementation

The board discussed the implementation of the McCloud remedy, addressing age discrimination in public sector pension schemes. The board was asked to consider whether to defer the inclusion of remedial service information until the 2025/26 Annual Benefit Statement (ABS). This decision impacts how pension benefits are calculated and communicated to members affected by the discrimination.

Breaches of the Law and Risk Management

The board reviewed the Pension Fund Breaches of the Law Log Extract, noting that no new entries had been added since the last review. However, the board also reviewed a copy of the letter to update The Pensions Regulator 10 June 2025 informing them that the fund has failed to meet the statutory deadlines in respect of publishing annual accounts and annual reports for each of these years. The board also reviewed the current Risk Register for the Pension Fund, noting that no new risks have been added.

New Homes Approved in Pearlie and Upper Norwood

The Planning Sub-Committee approved two planning applications this week, one for new family homes and another for a bakery, demonstrating the council's efforts to address housing needs and support local businesses.

Family Homes Approved on Box Ridge Avenue

The committee granted permission for the demolition of an existing building at 33 Box Ridge Avenue in Pearlie and the construction of three three-storey terraced houses.

• Housing Need: The development will provide a net increase of two additional family houses in the borough, addressing the need for family housing.
• Design Considerations: The new dwellings will have four bedrooms each and large rear gardens, with a front elevation designed to fit in with the street scene.
• Resident Concerns: Despite resident objections regarding a restrictive covenant, drainage, bats, and right to light, planning officers clarified that covenants are separate from planning considerations and that bat surveys had been undertaken and assessed by the council's ecologist.

Councillor Clive Fraser, Vice Chair of the Committee, supported the application, stating that the developers had worked with planning officers to create an acceptable scheme that would provide additional family homes.

Gail's Bakery Approved for Westow Hill

The committee also approved a change of use at 58-60 Westow Hill in Upper Norwood, allowing Gail's Bakery ¹ to occupy the site.

• Economic Vitality: The bakery will operate from 7am to 8pm Monday to Sunday, with a retail element and an ancillary cafe, contributing to the vitality of the district centre.
• Policy Compliance: The site is located in a district centre and within a secondary retail frontage, making the use as a bakery compliant with local policy.

Councillor Humayel Kabir, Member of the Planning and Subcommittee, welcomed the application, noting that many retail shops in the parade were closing down.

Other Matters

• The Scrutiny & Overview Committee and the Cabinet meetings were scheduled to discuss the council's financial performance, transformation plans, and scrutiny work programme, but no transcripts or videos were provided.

Upcoming Meetings

• Audit & Governance Committee on Tuesday 29 July 2025 will review the 2023-24 statement of accounts, IT controls, the target operating model, and the internal audit strategy. Link to meeting

This week in Croydon:

School Safety Funding at Risk

A petition presented at the Council meeting on 16 July 2025 called on Croydon Council to protect funding for School Road Safety Officers, specifically the Lollipop Man at Cypress Infants and Junior Schools. Petitioners argued that children's safety should not be compromised for financial savings, despite the introduction of a Healthy School Street and a zebra crossing near Cypress Road. This decision directly impacts the safety of young children and highlights the difficult choices the council faces amidst financial constraints.

Council Finances Remain Precarious

The council acknowledged a £1.6 billion deficit and ongoing discussions with the government for a financial resolution. Without government intervention, the council stated that it would not return to financial stability. This stark admission underscores the severity of Croydon's financial crisis and its reliance on external support.

Fly-tipping Fines Increase

In response to concerns about fly-tipping in Thornton Heath, the council announced increased enforcement, including Fixed Penalty Notices rising from £400 to £1,000. This action aims to deter illegal dumping and improve the cleanliness of the area, addressing a key concern for residents.

Housing Repairs System Under Improvement

Following complaints about the housing repairs system, the council apologised for poor service and outlined improvements, including outbound calls to residents 48 hours before appointments. The council stated that they had seen improvements in repairs service, including improved KPI's related to first time fix and tenant satisfaction with last repair. This initiative seeks to enhance the responsiveness and quality of housing services for tenants.

Community Safety Taskforce Established

Concerns about safety in Croydon, particularly regarding drug addicts and antisocial behaviour, led to the establishment of a dedicated Croydon Town Centre Taskforce. The taskforce, comprising the Council, Police, businesses, and voluntary groups, aims to tackle these issues through coordinated efforts. The council also mentioned plans to renew the Public Space Protection Order (PSPO) and upgrade CCTV.

Sale of Community Assets Defended

In response to a question about the sale of vital community assets, such as pre-schools and mental health charities, the council stated that the central government and the Improvement and Assurance Panel have encouraged the council to dispose of non-operational, non-essential assets to reduce debt. They confirmed that Davidson Pre-School is located in a property identified for disposal, but they have offered an extended lease to July 2026 to allow time to find a suitable premises for relocation. This decision reflects the council's need to balance financial pressures with the provision of essential community services.

Contract Standing Orders Updated

The council approved the adoption of proposed Contract Standing Orders (CSOs), which will supersede the existing Tender and Contract Regulations in Part 4H of the Council's Constitution. The new CSOs are designed to align with the legislative requirements of the Procurement Act 2023, the Procurement Regulations 2024, and the Provider Selection Regime (PSR). The council also authorised the Monitoring Officer¹ to update the Constitution and any Scheme of Delegations to make any consequential changes.

Other Matters

• The council noted the Health and Wellbeing Board Annual Report 2024, which summarised the board's work from 1 January 2024 to 31 December 2024.
• The council agreed to appoint Ishbel Fraser as the non-Council Employer representative and Kay Oshin as the Staff representative to the Pension Committee.
• The council noted the use of Special Urgency and Exemption from Call-in for key decisions during the first and second quarters of 2025.
• The council debated motions regarding the Green Belt in Croydon and adding Selhurst to the schedule of Blitz Cleans.

Upcoming Meetings

• Pension Board on Thursday 24 July 2025 will discuss compliance with pooling requirements, updates on government actions regarding pension scheme reforms, key performance indicators for pension administration, and a review of breaches of the law and the risk register. Link to meeting
• Planning Sub-Committee on Thursday 24 July 2025 will review applications for the demolition of a building and erection of terraced houses in Purley, and a change of use application in Upper Norwood. Link to meeting
• Scrutiny & Overview Committee on Tuesday 22 July 2025 will discuss the council's financial performance, transformation plans, and scrutiny work programme. Link to meeting
• Cabinet on Wednesday 23 July 2025 will discuss the 2024-25 provisional financial performance, responses to scrutiny recommendations, and the annual local account for adult social care and health. Link to meeting
• Audit & Governance Committee on Tuesday 29 July 2025. Link to meeting

This week in Croydon:

Government Minded To Intervene in Croydon Council

Croydon Council convened an extraordinary meeting on Thursday to address the government's announcement that it was minded to send commissioners into the council. This follows concerns about the council's compliance with the best value duty under the Local Government Act 1999. The council discussed the potential consequences for decision-making across all levels, from the Executive Mayor to the Scrutiny function.

• Best Value Duty: The government's concern centres on whether the council is delivering services economically, efficiently, and effectively.
• Proposed Directions: The Secretary of State has proposed directions for the council, including implementing the Croydon Stabilisation Plan, addressing financial management culture, and restoring public trust.
• Commissioner Powers: Commissioners could be appointed to oversee governance, scrutiny, financial management, service redesign, and even the appointment of statutory officers.
• Financial Implications: The council would be responsible for the fees and costs associated with the commissioners.

The council noted that the full impact of the intervention remains uncertain until the Secretary of State makes a final decision. Link to meeting

Ethics Committee Proposes Code of Conduct Changes

The Ethics Committee met on Wednesday to discuss revisions to the members' code of conduct, aiming to improve transparency and accountability. The proposed changes, which will be recommended to the Full Council, include:

• Updated Complaints Process: Streamlining the process for handling complaints against councillors, including clearer assessment criteria and reduced acknowledgement periods.
• Assessment Sub-Committee: Establishing a sub-committee to advise the Monitoring Officer[^5] on assessing complaints, ensuring a more robust and impartial review process.
• Conflict of Interest Clarity: Adding a new paragraph on conflicts of interest to provide clearer guidance for councillors.

These changes aim to strengthen ethical standards and public trust in local government. Link to meeting

Licensing Committee Considers Street Trading Applications

The Licensing Committee met on Monday to discuss applications for designating sites for street trading under the London Local Authorities Act 1990. The committee was scheduled to determine whether to designate three sites and grant licenses for those locations.

• Public Safety: The report pack noted that the proposed display areas would allow for the required two-metre clear distance between the edge of the display and the kerb, ensuring pedestrian safety.
• Stakeholder Consultation: The applications were advertised and brought to the attention of various council departments, including the police, planning, highways, and food & safety team.

The committee also reviewed minutes from past meetings, including those concerning various licensing sub-committee meetings. Link to meeting

Health Scrutiny Committee Examines Social Care Finances and Service Quality

The Scrutiny Health & Social Care Sub-Committee met on Tuesday to discuss the financial position of Adult Social Care and Health, the Adults Living Independently transformation programme, and the Croydon Health Service Quality Accounts.

• Financial Overspend: The sub-committee was scheduled to note that the Adult Social Care and Health Directorate had a forecast overspend of £5.3m (3.2%) against a budget of £164.0m as of January 2025.
• Increasing Care Costs: The report cited increasing care costs, high demand for home care, and the rising cost of nursing and residential care beds as significant factors in the overspend.
• Transformation Programme: The sub-committee was scheduled to note the progress of the Adults Living Independently programme, which aims to support residents to increase their independence and reduce reliance on commissioned care services.
• Health Service Quality: The sub-committee was scheduled to receive and note the Croydon Health Service Quality Accounts 2024-25, a statutory annual report reflecting the trust's performance in areas such as patient safety and clinical effectiveness.

The sub-committee was also scheduled to receive an update from Healthwatch Croydon and review responses from the cabinet to scrutiny recommendations. Link to meeting

Other Matters

• Licensing Sub-Committee: The Licensing Sub-Committee met on Thursday to discuss a personal licence determination under the Licensing Act 2003. Link to meeting

Upcoming Meetings

• Council on Wednesday 16 July 2025 will discuss changes to contract regulations, appointments to the pension committee, and a report on decisions taken with special urgency. Link to meeting
• Scrutiny & Overview Committee on Tuesday 22 July 2025. Link to meeting
• Cabinet on Wednesday 23 July 2025. Link to meeting
• Pension Board on Thursday 24 July 2025. Link to meeting
• Planning Committee on Thursday 24 July 2025. Link to meeting
• Planning Sub-Committee on Thursday 24 July 2025. Link to meeting