The Council meeting held on Wednesday, 28 February 2024, saw a significant rejection of the proposed budget and Council Tax for 2024-25. The meeting also approved the annual Pay Policy Statement for 2024-25.

The Council's Budget 2024-25

The most contentious item of the meeting was the proposed budget for 2024-25. Following extensive debate and questions to the Executive Mayor, Councillor Jason Perry, and the Cabinet Member for Finance, Councillor Jason Cummings, the Council voted to reject the budget and Council Tax-setting proposals by 33 votes to 36.

During the discussion, it was revealed that the domestic violence budget had been protected and ring-fenced, with an additional £70,000 allocated. The Council's £1.6 billion debt was discussed, with assurances that it was not spiralling and was being offset by asset sales. A transformation plan and strategy were also mentioned as being presented to the cabinet soon, with a transformation director appointed to deliver it.

Questions to the Chair of the Overview and Scrutiny Committee, Councillor Rowenna Davis, highlighted that while savings identified in the budget were ambitious, they were largely considered deliverable, with the exception of homes where reassurance was lacking pending stock condition surveys. A key risk identified was the removal of the £5,000,000 economic demand pressures budget. Scrutiny had recommended better advertising of the Hardship Fund, which was rejected. The budget was noted to balance only due to capitalisation from the government, enabling borrowing and asset sales. The debt burden was described as crippling, with 17p of every £1 paid by residents going towards servicing it.

The debate on the budget proposals included points raised by various councillors. Councillor Stuart King, the Opposition Leader, summarised the reasons for the rejection, urging the Mayor to revise the proposals in light of growth items contained in the Labour amendment. Councillor Ria Patel, representing the Green Party, stated they could not support the executive's proposals due to residents paying more for services while Special Responsibility Allowances remained untouched, and the capitalisation directions were not sustainable. Councillor Claire Bonham, a Liberal Democrat Independent Member, also opposed the proposals, citing the unsustainable approach to funding the budget through capitalisation directions.

The Chair advised Mayor Jason Perry to reconsider the budget proposal and either submit a revised proposal or respond to the objections with reasons. It was noted that the Council had a legal duty to agree a budget by the statutory deadline of 11 March 2024, and a further meeting was scheduled for 6 March.

Croydon Pay Policy Statement 2024/25

The Council approved the annual Pay Policy Statement for the financial year 2024-25. This statement, as recommended by the General Purposes Committee on 19 February 2024, will be published in accordance with section 39 of the Localism Act 2011.

The statement includes a clarification regarding the definition of Deputy Chief Officers. It also notes that the Market Supplement Policy and Procedure is under review, and the Pay Policy Statement may require amendment pending the outcome of this review.

Furthermore, the statement addresses the salary of the Chief Executive and Head of Paid Service. This post's salary, due for review since April 2023, was reviewed by the Appointments and Disciplinary Committee on 15 February 2024. The committee agreed to attach the pay for this role to the national pay review body covered by the Joint Negotiating Committee for Chief Executives. Consequently, the Chief Executive will receive the 3.5% JNC Chief Executive’s pay award for 2023/24, resulting in a salary of £199,210 effective from 1 April 2023. The contract of employment will be varied in consultation with the postholder.

The statement also outlines proposed changes to the approval process for salary packages of £100,000 or more. Officers are to prepare reports for the General Purposes Committee and full Council detailing consequential changes to the Appointments and Disciplinary Committee’s terms of reference and the Council’s Constitution.

Scheme of Members' Allowances

The item concerning the Scheme of Members' Allowances was initially moved to be considered after the Council's Budget item. Subsequently, as the Budget was not agreed, the Council unanimously resolved to defer this item to the second budget meeting on 6 March 2024, where it would follow the budget item.

Announcements

During the announcements, the Chair informed the Council of the passing of Councillor Mike Bonello, the ward councillor for Woodside Ward, and thanked him for his service. The Chair also provided updates on his charity events, including a successful curry evening, and announced forthcoming events such as a flag raising for Autism Action Week, a Young Stars of Croydon performance, and a Gala Dinner. Mayor Jason Perry expressed his pleasure in presenting a balanced budget that demonstrated financial discipline and delivered for the residents of Croydon.