Croydon’s Mayor has expressed frustration with ‘lack of power’ after police admitted they could ‘take no further action’ against the previous administration. Despite the report finding ‘evidence of mismanagement’, no individuals will be prosecuted for leading the council to bankruptcy in 2020.
Following the cross-party decision, the council committed to reviewing the recent report and calling on the government to have more powers to hold people in public office accountable. Mayor Jason Perry admitted that ‘residents are rightly angry’ about the previous mismanagement and that the current prosecuting powers are’ inadequate.’
Last year, the council’s Appointments and Disciplinary Committee (ADC) decided to take action against those responsible for Croydon’s eventual bankruptcy in November. The then Labour-led council declared s114 bankruptcy following years of financial mismanagement, failed enterprises like the Brick by Brick company, and poor central governance.
The council agreed to refer key reports, including the independent Penn and Kroll investigations, to the police for further scrutiny. Following a thorough investigation, including consultations with the Crown Prosecution Service, the police found evidence of potential wrongdoing, breaches of statutory duty, and incompetence.
Despite the damning findings, officers concluded the failings were collective rather than actions of individuals. As a result, the police confirmed they can ‘take no further action within their current powers.
While the council said it would review the findings in the upcoming ADC meeting on December 9, it did not hide its dissatisfaction with the outcome. It felt the result indicated the ‘very limited powers’ available to local authorities to hold those in power to account.
Croydon’s Executive Mayor, Jason Perry, has vowed to continue pressing the government for reform on behalf of Croydon residents, stressing that this is a problem for local government as a whole and needs urgent attention.
In an official statement following the report, Perry said: “The catastrophic failures in governance that led to the Council’s financial collapse in 2020, have been well documented. Our residents are rightly angry that they are paying the price for reckless and poor decision-making, and they tell us that they want those responsible, held to account.
“The Council’s decision to refer the independent Penn and Kroll reports to the Met police was appropriate, justified and in the public interest. These reports provided sufficient weight for the police to conduct a lengthy and detailed assessment.
“However, the offence of misconduct in public office requires a very high evidential bar and a direct link between the individual and the misconduct. Although the police assessment did reference potential wrongdoing, breaches of statutory duty and incompetence, they were highlighted as collective failings rather than individual.
“The situation at Croydon, which is not unique to our borough, has highlighted the very limited powers councils have to hold individuals to account. The law is simply not adequate as it stands. That is why I called on the government to give councils more powers to hold people in public office to account.
“The Council’s committee will be considering our options and next steps, and I will be asking the committee to agree that we lobby the new government on this issue.”
