The Cabinet meeting on 25 September 2024 addressed the council's financial performance, with a forecast overspend of £23.9 million for the General Fund revenue budget at Period 3. Significant decisions were also made regarding the future of the borough's library service, with a new model adopted that will see four libraries close while the remaining nine will have extended opening hours. Additionally, the Cabinet approved the appointment of a preferred bidder for the waste and street cleansing service contract and adopted the Croydon Investment Plan to drive economic growth.

Libraries Review

The Cabinet agreed to adopt a new model for Croydon's library service, which will involve the closure of four libraries: Bradmore Green, Broad Green, Sanderstead, and Shirley. This decision was made despite significant opposition from residents during the consultation period, with many expressing concerns about accessibility, particularly for older people, those with disabilities, and families with young children. The council stated that the closures are necessary to reinvest funds into the remaining nine libraries, which will see extended opening hours, including Saturday and evening access, and an improved offer.

The new model will see these nine libraries operate as library hubs, with increased staffed hours and the introduction of self-service access at some sites. An outreach service will also be developed to engage with non-users and reach areas of need across the borough, including delivering book collections and activities in community venues. The council also plans to invest in the digital offer, providing online resources and digital skills support.

The decision to close the four libraries was met with strong opposition, with many residents arguing that the previous reduction in opening hours had already negatively impacted usage and that the council's financial difficulties should not lead to the loss of valued community assets. Concerns were also raised about the lack of transparency regarding the proposed community hub model and the feasibility of outreach services.

Mitigation measures for the closures include:

• Extended opening hours at the remaining nine libraries, with all nine offering at least five days of staffed opening per week, including Saturdays.
• Evening opening at two libraries.
• The provision of a scheduled weekly accessible bus shuttle service for residents with access needs to visit their nearest library.
• An outreach service offering community book collections and weekly events in community venues.
• Book collections for schools impacted by closures.
• Investment in the library service's digital offer, including training and skills sessions.
• Improved marketing and communication of the service offer.
• Access for users unable to visit a library to use the home library service.

The council also plans to commence a process to consider community operation for the sites no longer required for the statutory library service, offering support and potential grant funding for groups wishing to take on these buildings.

2024-25 Financial Performance Report

The Cabinet noted the General Fund revenue budget outturn is forecast to overspend by £23.9 million at the financial year-end, after utilising £38 million in capitalisation directions requested from the Ministry of Housing, Communities and Local Government (MHCLG), £5 million from the risk contingency budget, and £13 million from corporate earmarked reserves. Service directorates have been instructed to reduce net expenditure to balance the annual budget, a task acknowledged as challenging due to increasing demand and market prices across local government. The council will continue to strive to balance its 2024-25 budget through its in-year Financial Recovery Plan.

Budget inter-directorate virements totalling £15.694 million from Corporate to service directorates for non-pay inflation were approved. Progress on the Medium Term Financial Strategy (MTFS) savings achievement stands at £20.8 million (75.1%) against a total target of £27.7 million. Work on the Council's Transformation Programme is continuing.

The Housing Revenue Account (HRA) revenue budget is forecast to overspend by £2.0 million. Budget changes to the 2024-25 General Fund capital programme include a net increase of £8.5 million, incorporating the adoption of Reconnecting Croydon (£4.755 million funded by government grant) and the Oracle Improvement Programme (£4.419 million funded by earmarked reserves). The General Fund capital programme for 2024-25 is forecast to break even against a revised budget of £118.5 million, while the HRA capital programme forecasts an underspend of £4.9 million against a budget of £57.2 million.

The council's historic borrowing and subsequent debt burden remain critical to the non-sustainability of the revenue budget, with ongoing dialogue with MHCLG regarding potential further financial support. Spend Control Panels are continuing to operate to maintain tight financial control.

Procurement Waste and Street Cleansing Service - Award Report

The Cabinet approved the appointment of a preferred bidder for the delivery of waste and recycling collection, street cleansing, and vehicle maintenance services. This contract, set for an eight-year term from April 2025 to 2033, includes an option for a further two eight-year extensions. The new service aims to incorporate improvements such as a graffiti removal service, enhanced contract management, increased waste collection frequency for flats above shops, and the introduction of a nighttime economy collection. A more targeted, data-driven street cleaning service and annual performance reviews are also part of the agreement. Resident feedback regarding collection frequency and street cleansing improvements has been addressed within the contract. The Corporate Director of Sustainable Communities, Regeneration and Economic Recovery, in consultation with the Executive Mayor and Cabinet Member for Streets & Environment, is authorised to agree the final contract terms.

Croydon Investment Plan - Unlocking Croydon's Potential

The Cabinet agreed to adopt the Croydon Investment Plan, titled Unlocking Croydon's Potential. This three-year plan aims to revitalise Croydon and secure long-term economic growth through a collaborative and data-driven approach to inward investment. A Partnership Board will be established to bring together key partners to implement the plan and drive new investment into the borough. Authority has been delegated to the Corporate Director of Sustainable Communities, Regeneration and Economic Recovery, in consultation with the Mayor and the Cabinet Member for Planning and Regeneration, to agree the structure, membership, constitution, and Terms of Reference of this Partnership Board. The plan aligns with the broader London Growth Plan, positioning Croydon as a high-priority area for investment due to its significant potential.

Whitgift Indemnity and Land Transfer Agreement Remedy - Update

The Cabinet agreed to enter into new agreements to facilitate the regeneration of the town centre. These include a Deed of Release and Replacement of Guarantor, releasing Hammerson UK Properties Limited as a guarantor and appointing Unibail-Rodamco TH B.V. as the replacement. A fourth Supplemental Agreement to the ILTA will also be entered into for general updating and to introduce revised remedy provisions. Authority has been delegated to the Corporate Director of Sustainable Communities, Regeneration and Economic Recovery to negotiate and enter into a Conditional Land Sale Agreement for the freehold of the former Allders Car Park, the leasehold of the Whitgift Car Park, and subsoil of land in Poplar Walk and Dingwall Avenue, along with possible ground anchor licences. This agreement also allows for the finalisation of terms and subsequent decisions related to the implementation of remedies. The revised ILTA signifies a positive reset of the Council's relationship with Croydon Limited Partnership (CLP), with the ILTA allocating over £6 million towards initiatives in North End, including repurposing elements of the Allders building for temporary use.

Public Health Peer Review

The Cabinet noted the key findings of the Public Health Peer Review, which assessed the function in three areas: Vision and Strategy, Use of Resources, and Partnership Working. The review commended the operational achievements of the public health team and identified opportunities to reinforce corporate leadership, partnerships, and resource utilisation. An action plan has been created to address the review's recommendations, with task and finish groups established to lead change in four key areas: Public Health finance and governance, corporate leadership and visibility, system partnerships, and evidence-based practice. The publication of the peer review report was endorsed.