Croydon to receive “exceptional” financial support from government

Croydon council is one of six local authorities in the capital set to receive “exceptional” financial support from the government as it struggles to balance its budget.

Yesterday, the Ministry of Housing, Communities and Local Government announced that it would provide Croydon council £136million for the financial year 2025/26.

The South London local authority joins five other London councils, Barnet, Enfield, Haringey, Havering and Newham, which will be granted funding ranging from £88million to £10million.

Additionally, Lambeth council will be given £40million specifically to manage financial pressures within its Housing Revenue Account (HRA). 

Lambeth is the only council to receive the allocated funding which will go towards the running of its own housing stock.

Minister of State for Local Government and English Devolution, Jim McMahon, said: “We are under no illusion of the state of council finances and have been clear from the outset on our commitment to get councils back on their feet and rebuild the foundation of local government.”

The minister encouraged councils to “come in confidence” to seek help, promising a “relationship of partnership – not punishment”.

London Council’s welcomed the funding announcement but described emergency measures as a “misnomer”. 

The cross party organisation raised concerns that emergency funding would only “burden councils with further debt” rather than stabilise their finances.

Cllr Claire Holland, Chair of London Councils, said: ““Exceptional Financial Support is a misnomer – it is no longer exceptional and it fails to provide sustainable financial support, instead forcing local authorities to borrow to maintain basic statutory services. 

“Rather than resolve the crisis, EFS is a short-term measure that leaves us with more long-term debts to worry about.”

Pictured top: Bernard Weatherill House, Croydon council offices in Fell Road (Picture: Tara O’Connor)