The Scrutiny & Overview Committee of Croydon Council met on Wednesday 27 May 2026 to appoint members to its sub-committees and to receive an update from the Executive Mayor on his priorities and the Council's financial performance. The committee agreed to the proposed membership of the four Scrutiny Sub-Committees, ensuring political balance in line with council representation. A significant portion of the meeting was dedicated to a comprehensive update from Executive Mayor Jason Perry, covering his priorities for the upcoming term, the Council's financial position, and various service delivery areas.

Appointments to Scrutiny and Overview Sub-Committees

The committee formally appointed members to its four sub-committees: the Children and Young People Sub-Committee, the Health and Social Care Sub-Committee, the Homes Sub-Committee, and the Streets and Environment Sub-Committee. These appointments were made in accordance with the Council's Constitution and the Local Government and Housing Act 1989, which mandate political balance to reflect the overall composition of the Council. Following the May 2026 elections, the political breakdown of the Council is Labour (42.5%), Conservative (40.85%), Green (11.27%), Liberal Democrat (2.82%), and Reform UK (2.82%).

Each of the seven-member sub-committees will comprise three Conservative members, three Labour members, and one Green member. The report noted that the previous arrangement of a combined Streets, Environment and Homes Sub-Committee had been separated into a Homes Sub-Committee and a Streets and Environment Sub-Committee in response to well-publicised issues with housing conditions on Regina Road in 2021. This separation was agreed to be reviewed in summer 2026/27, following the establishment of the Housing Assurance Board. The committee also noted that it was not possible to waive the political balance requirements at this meeting as prior notice had not been given.

Executive Mayor's Update

Executive Mayor Jason Perry provided an update on his priorities for the forthcoming term and reflected on the progress made during his first term. He highlighted key priorities including delivering a cleaner and safer Croydon, developing the town centre and local district centres, improving services to ensure value for money, and supporting vulnerable residents, particularly in children's and adult services.

Financial Sustainability and Debt: Mayor Perry addressed the Council's financial position, acknowledging the challenging inheritance in 2022 and the steps taken to stabilise finances, including addressing budget gaps and improving oversight. He noted the Council's reliance on Exceptional Financial Support¹ and the ongoing need to reduce this. The Mayor also highlighted the significant debt burden and the importance of continued efficiency and value for money. Discussions with the Government regarding the Council's historic debt burden were described as complex, with no fixed timeline for resolution. The Mayor emphasised that the Council was working with Commissioners² to identify the appropriate time to press for a deal on the debt.

Communicating Difficult Decisions: The Mayor acknowledged that difficult decisions would continue to be necessary. He stressed the Council's commitment to consulting and engaging with residents on proposed changes, focusing on achieving better outcomes and delivering services more efficiently. The approach is centred on transforming services rather than simply reducing them, involving partnerships and benchmarking. The impact of significant changes would be monitored, with examples like youth engagement services showing improved outcomes despite reduced costs. The Committee expressed interest in scheduling a future review of changes made to the library service, potentially linking it to a broader review of Council accessibility.

Housing and Resident Engagement: Housing was identified as a key priority, with significant improvements noted since 2022, including the Council's removal from special measures and progress in addressing poor conditions. The Mayor emphasised the importance of resident engagement, citing the Regina Road redevelopment and the adoption of a Residents' Charter. Ongoing engagement is supported through structures like the Housing Improvement Board. While rent collection had improved, support for residents experiencing financial hardship remained available. The Homes Sub-Committee will be following up on many of the housing elements in the Mayor's plan.

Crime and Public Safety: The contribution of Live Facial Recognition cameras, alongside other measures such as tackling anti-social behaviour and supporting rough sleepers, towards reducing crime and improving public safety was discussed. The Mayor expressed strong support for Live Facial Recognition, highlighting its role in recent arrests and its contribution to reductions in anti-social behaviour and crime in the town centre, supported by feedback from local traders. Similar improvements are planned for district centres. The Committee agreed on the need to track both quantitative and qualitative outcomes of these initiatives.

Repairs Service: Despite improvements and successful repairs, satisfaction levels with the housing repairs service remained low due to inconsistent performance and lengthy resolution times. The Mayor acknowledged the need to improve contractor performance, strengthen contract management, and enhance communication with residents. The housing repairs contract will be included in the work programme of the Homes Sub-Committee.

Family Hubs and Community Bases: The success of established Family Hubs was noted, with a third hub in development. The Mayor highlighted the benefits of partnership working in bringing services together and improving outreach. Four community bases, operated by local organisations from former library sites, are now well-used and offering a broader range of services. The restructuring of the library service has also improved access to council services at the remaining nine libraries.

Motorist Support and Road Maintenance: The administration is committed to supporting motorists, recognising the borough's reliance on car use. Measures include proactive road maintenance through pothole patrols and resurfacing programmes, and the introduction of one hour of free parking across district centres. The Mayor confirmed that no further Low Traffic Neighbourhoods (LTNs) would be introduced. The road resurfacing programme covers the entire borough, including residential streets. A consultation on the potential retention or removal of 20 mph zones is planned. The Council is exploring new technologies for more efficient pothole repairs.

District Centre Investment: A range of initiatives have been implemented to improve district centres, including UK Shared Prosperity Fund investment, blitz clean programmes, free parking, and the Croydon Means Business scheme. The Mayor acknowledged the need for further work to develop robust Key Performance Indicators (KPIs) to measure success, likely including shop vacancy rates, parking usage, and wider economic activity. The Committee sought further clarification on the effectiveness of these interventions and requested data on business rate support uptake.

Landlord Engagement: The Council is working to identify and map landlords of commercial units in district centres to facilitate more effective engagement. Efforts are underway to build a clearer picture of landlords and vacant units, supported by a new website promoting available properties.

Business Rate Hardship Relief: Feedback indicated that the Council's website guidance on business rate hardship relief lacked clarity, particularly regarding the criteria for demonstrating benefit to local taxpayers. The Mayor acknowledged this and advised that the website would be reviewed to ensure information is clear and accessible.

External Investment and Job Creation: The Mayor outlined investment and regeneration activity in the town centre, including infrastructure improvements, site redevelopment, and support for businesses. Initiatives like the forthcoming Mayor's Employment Fund and programmes such as Croydon Works and Croydon Means Business aim to support residents into employment and assist SMEs. Detailed information on investment levels and job creation could be provided, and future targets and milestones are yet to be developed.

Voluntary, Community and Faith Sector Partnerships: The importance of these partnerships in delivering services and positive outcomes for residents was emphasised. Examples include commissioning local organisations for youth engagement and wider collaborative work to support communities. The Council provides support to the sector, including training and signposting to funding opportunities. Concerns were raised about reliance on partner funding, particularly from the police, and how the Council manages partnership arrangements to mitigate potential funding shortfalls and ensure continuity of safeguarding services. The Mayor reassured that safeguarding services were not at risk and that the Council was raising concerns with partners not meeting their financial contributions.

2025-2026 Period 10 Financial Performance Report

The Committee reviewed the Council's financial position for Period 10 (January 2026), which indicated a forecast underspend of £27.3 million. This aligned with the in-year stabilisation plan target. Key positive movements included improvements in SEND travel assistance costs. All departments were forecasting underspends, which was noted as unusual in local government.

Dedicated Schools Grant (DSG): The Dedicated Schools Grant reported an adverse movement, with an increased overspend on the high needs block from £20 million to £33.5 million. The early years block also faced a potential £1.2 million overspend due to government policy changes increasing funded childcare hours. The Director of Finance explained that the high needs overspend was a significant and ongoing challenge, driven by an increasing number of pupils with Education, Health and Care Plans (EHCPs) being placed in the borough by other local authorities. This overspend is expected to continue in the short term, and a significant proportion of the DSG deficit is expected to be written off. The Committee noted that a report on the DSG would go to the Audit and Governance Committee in September. The Government's High Needs Stability Grant is expected to cover around 90% of the accumulated DSG deficit up to March 2026, potentially reducing Croydon's liability to around £10 million.

Internal Spending Controls: Strengthened internal spending controls, supported by the Oracle system, have improved visibility of staffing structures and introduced more robust approval processes for recruitment, contributing to in-year savings. Recruitment Panel scrutiny and enhanced reporting provide better oversight.

Medium Term Financial Strategy (MTFS) Savings: The Council achieved 86.1% of its targeted MTFS savings, against a 90% aspiration. While disappointing, this delivery rate was considered strong compared to other councils. Some savings were delayed due to timing and approvals, and will have a fuller impact in subsequent years.

Stabilisation Plan: The Stabilisation Plan is nearing completion. Some actions, such as the Target Operating Model programme, will be absorbed into the wider Transformation Programme. Regarding Bernard Weatherill House, increasing occupancy is a gradual process, with ongoing work to secure further tenants. Delays to Precious House children's home were due to Ofsted registration timelines, but the facility is now operational.

Business Risk Earmarked Reserve: A provision of approximately £3.5 million was made for LTN fine refunds from the business risk reserve, which is expected to retain a balance of around £5 million. The removal of LTN schemes creates an ongoing annual income pressure of around £3 million, which will be managed through monitoring and identifying alternative income opportunities.

Vacancy Monitoring: Vacancy savings arise from staff turnover, restructuring, and planned efficiencies. Posts are temporarily vacant due to recruitment timelines or intentionally held vacant for future budget savings. Vacancies are not left unfilled where needed for service delivery.

Dedicated Schools Grant (DSG) Ringfencing: The DSG is strictly ringfenced, with all SEND-related provision funded directly from it. The Council is proactive in identifying and supporting children with SEND, including those moving into the borough. The financial challenge is noted as a national issue.

Government Intervention: The Council's financial recovery since previous Section 114 notices and government intervention was assessed. While financial pressures have increased, the Council is considered better organised and more capable of addressing its challenges. The Medium-Term Financial Strategy shows a reducing dependency on exceptional financial support. The Commissioners have not raised concerns about the Council's direction and are considered broadly content with progress.

Capitalisation Directions: Capitalisation directions are forecast to reduce progressively over time, potentially reaching around £69 million by the end of the current Medium-Term Financial Strategy. This reduction is driven by a combination of historic debt, standard capital financing costs, and demand-led service pressures.

The Committee agreed to invite the Commissioners to attend a future meeting alongside the Executive Mayor when the Mayor's Business Plan is next reviewed.

Scrutiny Recommendations

The Committee approved recommendations made by its Sub-Committees for submission to the Executive Mayor for his consideration.

Scrutiny Work Programme 2026-27

The Committee noted that a fully developed version of the Scrutiny Work Programme 2026-27 would be presented at the next meeting. The programme will continue to focus on the Council's finances and the delivery of the Transformation Programme, incorporating items raised at the meeting for future review.