Misused public fundsOversight & ethics enforcement
Croydon Council issued three Section 114 notices between 2020 and 2022, the only English council to do so
Confidence: Confirmed · 3 sourcesLondon Borough of Croydon · Oct 12, 2026
Subject of this story
Croydon Council
Jason Perry, Executive Mayor of Croydon
Also named
Oversight
Grant Thornton UK LLP
What happened
Croydon Council issued a Section 114 notice, a formal declaration that a council cannot balance its budget, on 11 November 2020, a second in 2021 and a third in November 2022. Inside Croydon reports it is the only council to have issued three. External auditor Grant Thornton cited 'collective corporate blindness' to the seriousness of the financial position, and the Institute for Government linked the first notice to low reserves and commercial property investments hit by the pandemic. Government commissioners were sent into the council in 2025.
Sources (3)
Croydon Council (official Section 114 notice page)Council issues a Section 114 notice as part of action plan to tackle financial challenges.
Institute for GovernmentCroydon council's bankruptcy is a warning for the UK government.
Inside CroydonCroydon and 99 other councils may seek government bail-outs.
Response
Croydon Council
On-record admission
Contacted and made an on-record admission — exact wording not on record.
Jason Perry
Statement given
Contacted and responded — exact wording not on record.
What happened next (0)
No outcome recorded yet.