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Croydon Council plans to slash staff in bid to save cash after bankruptcy

MyLondon logo MyLondon 30/11/2021 Tara O'Connor

Croydon Council plans to axe more than 50 staff in a bid to balance its budget in the wake of its bankruptcy.

The council continues to face financial difficulties after declaring bankruptcy in November last year.

It originally estimated there was a £38 million budget gap for 2022/23 but it has now reduced this to £13 million.

Budget papers going to a cabinet meeting next Monday (December 6) show that in part this will be made by cutting 58 jobs.

READ MORE: Fears cash-strapped Croydon Council could axe more jobs

It is not yet known which staff will be laid off. Hundreds of council jobs were already cut last year.

It is the first in a series of reports ahead of the final budget being set on February 21, 2022.

The report says that trade unions were told of the proposed redundancies on Friday (November 26) just days after they protested outside the town hall against expected cuts.

It adds: “In order to mitigate workforce impact, managers will delete vacant posts, where possible, and offer voluntary redundancy and redeployment to affected staff supported by the HR team.”

Before the council was forced to issue a bankruptcy notice, it had reserves of just £10 million which fell to negative £3.9 million in the months leading up to bankruptcy.

But using a government loan this has now been bumper up to £27.5 million.

Hamida Ali, the leader of Croydon Council, said: “Putting the council on a sustainable financial footing will mean difficult decisions and like all councils we continue to be impacted by Covid-19, economic uncertainty and rising demand for our services after a decade of government cuts.

“There will be challenging decisions to make but we will always seek residents’ views about significant changes that affect them.”

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