Consequences for Croydon – TaxPayers’ Alliance article

With the Croydon Council having recently declared bankruptcy for the third time and planning a 15 per cent hike in council tax. The TaxPayers’ Alliance have published a deep-dive by Mike Swadling of this parish looking at how the people of Croydon found themselves in this mess, and what might happen next.

“The consequences of years of failure to control borrowing and spending by the previous administration are now being borne by the local taxpayers”

“Were it not so impactful on those who can least afford it, you could almost admire the thoroughness with which the council undertook its hatchet job on the borough’s finances”

“the council was failing to deliver on basic services. The Children’s Services department was rated inadequate. £1.1 million was spent developing Surrey Street Market but resulted in fewer traders”

“To compound all of this, London Mayor Sadiq Khan is proposing to bring most of outer London into the ULEZ zone. This will charge motorists with older, higher emission vehicles £12.50 a day for driving them”

“Spending public funds on arts that are not viable commercially or via voluntary donations as the council has been doing for years, is no less of a waste of money when it comes from someone else’s funding stream”

Full article https://www.taxpayersalliance.com/consequences_for_croydon

Déjà vu all over again – the sorry tale of Croydon council. 

By Mike Swadling

“Our council has ruined our town centre, lost tens of millions on commercial and residential property speculation, paid hundreds of thousands if not millions, subsidising entertainment for the few, all whilst reducing core services for the many”

Our recent email bulletin started with the following statement: “We have heard once again that Croydon Council is declaring de facto bankruptcy.  This will no doubt lead to more taxes and worse services for the people of Croydon.  Regardless of whether you believe in a small, limited government (as we do) or believe the state should provide extensive support, Croydon Council is surely a salutary tale of why regardless of the overall scale, government should focus on doing less, better.  Our council has ruined our town centre, lost tens of millions on commercial and residential property speculation, paid hundreds of thousands if not millions, subsidising entertainment for the few, all whilst reducing core services for the many.  We needed them, the vulnerable people who rely on the service they provide, needed them, to do fewer things better.”

In a sorry tale of déjà vu on the 22nd November Croydon Council again issued a Section 114 notice, declaring de facto bankruptcy.  This is the 3rd such notice, starting in 2020, after which Croydon was granted a £120 million bailout loan by the government to balance the books.    

“The council is £1.6 billion in debt, with £47 million in annual debt repayment.”

The council is £1.6 billion in debt, with £47 million in annual debt repayment.  In the councils Section 114 report they state “The conclusion is that, in order to balance its budget, Croydon needs to reduce its spending by £130m next financial year alone (before any council tax increase) which is simply untenable out of a net budget of some £300m.”

In their Medium Term Financial Strategy report the council sets out the staggering amount of new Capitalisation Directions that may be required.

On these sums it is almost impossible to see how the council can meet its statutory requirements and save the funds necessary to balance the budget without additional help.  Whatever the path forward for Croydon it must start with realistic budgeting and basic accounting skills.  For some months, any Conservative councillor I have spoken with has been at pains to tell me the budget situation in Croydon is far worse than they expected.  Of course, some of this is politics but when you look at the figures of budget corrections it’s hard to disagree with the basic premise.

“this represents £9.5 million less for social services, libraries, local roads, swimming pools and other services.  This one mistake represents an additional £63 needed from each of the 150,100 homes in Croydon”

The level of over estimation of Parking and traffic income is clearly wrong, but unforgivable is the £9.5m a year that has been taken from the ring-fenced Housing Revenue Account (HRA).  The BBC report notes “The HRA is only supposed to be used for the authority’s social housing stock and it is from this account that maintenance and repair costs come for council homes. “What we’ve established is that there has been an overcharge of the HRA for several years,”.  This may sound like just an accounting issue, but this represents £9.5 million less for social services, libraries, local roads, swimming pools and other services.  This one mistake represents an additional £63 needed from each of the 150,100 homes in Croydon.   If this were the only mistake it might be forgivable but as the above table shows this is one of many.  No wonder in 2020 the council’s external auditors Grant Thornton described a council where “There has been collective corporate blindness to both the seriousness of the financial position and the urgency with which actions needed to be taken”.

I was pleased to be able to recently speak to the TaxPayers’ Alliance about some of the Council’s misspending.

The council is taking steps to improve the situation.  £90 million in savings have been made and £50 million of assets have been disposed of, with a further £100 million expected to be made in sales over the next few years.  The Colonnades retail park is included in this, the council purchased the Colonnades hoping to make money but will no doubt end up with a quick sale whilst still holding the debt from making the original purchase.  If only they had listened to those warning of this at the time.

Taxpayer funding of cultural events and community organisations by the council has finally reduced.  This hasn’t stopped the council being a sponsor of Croydon Pride yet again.  A great day out, but one surely not needing funding from a bankrupt council. 

“At the time of a cost of living crisis, unnecessary spending is already underway”

More worryingly in 2023 Croydon becomes the London Borough of Culture.  Funded by the Mayor of London, the “London Borough of Culture award aims to shine a light on the character and diversity of London’s boroughs and bring culture to everyone”.  At the time of a cost of living crisis, unnecessary spending is already underway as the table below from the councils records shows.

Payment DateVendor NameVendor TypeCost Centre DescriptionAmountInvoice Creation Date
23-May-22Stanley ArtsCommercialBOROUGH OF CULTURE£3,000.0025-Apr-22
23-May-22Stanley ArtsCommercialBOROUGH OF CULTURE£1,500.0025-Apr-22
08-Jun-22Savvy TheatreCommercialBOROUGH OF CULTURE£3,000.0012-May-22
25-Jul-22Stanley ArtsCommercialBOROUGH OF CULTURE£75,000.0027-Jun-22
20-Sep-22Fashion Meets Music Collective C.I.C.CommercialBOROUGH OF CULTURE£50,000.0007-Sep-22
28-Sep-22Savvy TheatreCommercialBOROUGH OF CULTURE£10,000.0007-Sep-22

“There is no more expensive thing than a free gift.”

The French Renaissance philosopher Michel de Montaigne noted “There is no more expensive thing than a free gift.”  With Croydon Councils record of misallocating funds, and run away spending, Croydon’s, London’s, and the nations taxpayers who are bailing out the council have plenty of reason to worry. 

Croydon Mayor, Jason Perry has noted “Even with Government support, the coming years will be incredibly financially challenging for Croydon Council. We must balance our books and become a much smaller organisation.”  Maybe a good way to start would be for him to politely decline to waste more taxpayers cash on the London Borough of Culture award.

Podcast Episode 75 – Climate – rational action, and affordability

We bring you the speeches from our recent event in Purley with speakers Benjamin Elks from the Taxpayers’ Alliance and Harry Wilkinson from Net Zero Watch.

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Climate – rational action, and affordability

Image: By GodeNehler – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=74650075

Join us on Wednesday 28th September for an evening talking about the climate, rational action, and affordability.

Our guests, Harry Wilkinson, Head of Policy at Net Zero Watch and Benjamin Elks of the Taxpayers’ Alliance will each present and hold a joint Q&A.

As energy prices rocket and everything from driving your car to changing your boiler becomes more restricted, Ben and Harry will be giving their thoughts on the government’s Net Zero measures.

Come along 7pm, upstairs at Elliott’s Bar, 5 High St, Purley CR8 2AF.

Benjamin Elks worked in pension prior to moving to the TPA last year working in Fundraising, Operations and Events.  Ben supported our recent action day with the TPA in Purley questioning executive pay at Croydon Council.  Ben has a degree in Politics and War Studies from the University of Wolverhampton and plays for a local rugby team in his spare time.  Ben can be found on Twitter at @elksy91.   

Harry Wilkinson is the Head of Policy at Net Zero Watch. Net Zero Watch aims to is highlight and discuss the serious implications of expensive and poorly considered climate change policies. Harry has regularly written for the Conservative Woman and has appeared with us on our Podcast. Harry can be found on Twitter at @HarryWilkinsonn.   

Facebook Event: https://www.facebook.com/events/1119759738961387

The TaxPayers’ Alliance in Purley.

On Saturday 30th July we had a great morning out in Purley with the TaxPayers’ Alliance asking residents if they think Croydon’s former Chief Executive Jo Negrini was worth her £613,895, 2020-21 remuneration package.

The publics response was overwhelming and clear, with only one person saying they felt the former Chief Executive deserved the remuneration.

Photo’s and a short video from the day below.

Press Release: THE TAXPAYERS’ ALLIANCE, TOWN HALL RICH LIST ROADSHOW COMES TO PURLEY

The TPA are coming to Purley on the 30th July for the latest leg of the Town Hall Rich List Roadshow.

The TaxPayers’ Alliance, was launched in 2004 to speak for ordinary taxpayers fed up with government waste, increasing taxation, and a lack of transparency in all levels of government.

Following years of waste at Croydon Council and the de facto bankrupting of the borough, they are coming to Purley on the 30th July for the latest leg of the Town Hall Rich List Roadshow.

The TaxPayers’ Alliance have held several street stalls in Croydon prior to the issuing of a Section 114 notice and Croydon declaring de facto bankruptcy, these have focused on executive pay. Their review of Councillors’ allowances highlighted the premium rates councillors received compared to nearby colleagues, and the town has too often featured on their Blog.. The taxpayers and service recipients of Croydon would all be better off if the council had listened when the TPA all too frequently highlighted our town.

Now, with assistance from the Croydon Constitutionalists, they will be asking local residents whether they thought Croydon’s former Chief Executive Jo Negrini was worth her £613,895, 2020-21 remuneration package.

Locals will have the opportunity to have their say, by using ping pong balls to cast their votes. Croydon Council’s political make-up has changed, but with many tough years ahead this is an opportunity for people to say if they want to retain the council’s remuneration habits of the past.

The street stall will be open Saturday 30 July, 10:30 am – 1pm, outside 911 Brighton Rd, Purley CR8 2BP.

If you would like more information about this topic, please contact Michael Swadling at [email protected].

Full Release PDF:

The TaxPayers’ Alliance, Town Hall Rich List Roadshow comes to Purley.

The TaxPayers’ Alliance, was launched in 2004 to speak for ordinary taxpayers fed up with government waste, increasing taxation, and a lack of transparency in all levels of government.

Following years of waste at Croydon Council and the de facto bankrupting of the borough, they are coming to Purley on the 30th July for the latest leg of the Town Hall Rich List Roadshow.

With assistance from the Croydon Constitutionalists, they will be asking local residents whether they thought Croydon’s former Chief Executive Jo Negrini was worth her £613,895, 2020-21 remuneration package.

Locals will have the opportunity to have their say, by using ping pong balls to cast their votes.  Croydon Council has changed, but with many tough years ahead this is an opportunity for people to say if they want to retain the council’s remuneration habits of the past.

Come and join us, to help the people of Purley send a message to the council.

We hope to see you Saturday 30 July, 10:30 am – 1pm.  In Purley, outside Andrews Estate Agents 909-911 Brighton Rd, Purley CR8 2BP.

Facebook: https://fb.me/e/1RgXJZniH

Taxpayers’ Alliance – Town Hall Rich List 2022 – Croydon Council

Croydon adding insult to taxpayer injury with the highest paid executive, and once again leading the list of local boroughs with executives paid over £100K, according to report.

The TaxPayers’ Alliance have issued their 2022 Town Hall Rich List of council employees in the UK in receipt of over £100,000 in total remuneration.  The list covers the financial year 2020-21, covering the period since residents have seen services cut following the issuing of a Section 114 notice, when the council declared de facto bankruptcy.  It’s not hard to see why the council ended up in this position when despite years of complaining about a lack of funding, and years of maximum council tax increases, Croydon Council had 29 staff earning over £100,000 a year (up from 19 the previous year), and with the former chief executive, Jo Negrini, receiving the highest remuneration of any council employee in the country at £613,895, which included a loss of office payment of £144,356 and a pension strain payment of £292,851.

To put the overall Croydon figures into context, neighbouring Sutton had just 14 staff whose remuneration exceeded £100,000.  Merton 12, Tandridge 1, and Reigate & Banstead 1.  Whilst our inner London neighbours Lambeth 27 staff and Lewisham 19 (both fewer than Croydon), Barnet a similar sized borough made do with just 8 staff on over £100K.  Some of the numbers for Croydon indicate the high turnover of staff, but surely during a period of front-line staff losing their roles, and lost services for the public, something and certainly more should have been done to control executive pay.

When we reviewed the TaxPayers’ Alliance Town Hall Rich List for 2021, we asked how when private sector organisations often benchmark salaries against other similar organisations the council clearly did not. Within the council, schools are required to benchmark themselves on a range of financial measures against other similar schools.  When the council requires emergency government funding, and undertakes a fire sale of assets like the Croydon Park Hotel sold at a £5 million loss, how is it possible for the council to be so blind to the pay of its own executives?

With a crumbling town centre, Purley Swimming Pool closed, libraries’ opening days reduced, rent increases, Council Tax increases, damning audit reports, and some council tenants living in squalor, how can it be acceptable that at £613,895 Croydon Council’s former chief executive Jo Negrini, received the highest remuneration of any council employee in the country?

With local elections in May, we ask Croydon residents to ask those seeking re-election, how they can justify their council tax payments being spent this way, and how with this track record of oversight they can justify being returned to office?

Croydon Council Pay over £100,000, 2020-21:

NameJob title Salary Loss of office Pension strain payments Sub total Pension Total
Jo NegriniChief executive £151,474 £144,356 £292,851 £588,681 £25,214 £613,895
 Undisclosed £207,500   £207,500  £207,500
Lisa TaylorFinance, investment and risk and interim s151 officer £162,134   £162,134 £39,968 £202,102
Shifa MustafaExecutive director, place £156,060   £156,060 £40,888 £196,948
Jacquline Harris-BakerExecutive director of resources and monitoring officer £156,060   £156,060 £40,888 £196,948
 Undisclosed £192,500   £192,500  £192,500
Guy van DicheleExecutive director (interim) of health, wellbeing & adults £150,411   £150,411 £36,505 £186,916
Hazel SimmondsExecutive director of gateway, strategy & engagement £137,700   £137,700 £36,077 £173,777
 Undisclosed £147,500   £147,500  £147,500
 Undisclosed £137,500   £137,500  £137,500
 Undisclosed £137,500   £137,500  £137,500
 Undisclosed £137,500   £137,500  £137,500
 Undisclosed £137,500   £137,500  £137,500
Katherine KerswellChief executive £105,326   £105,326 £27,595 £132,921
 Undisclosed £132,500   £132,500  £132,500
 Undisclosed £127,500   £127,500  £127,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £117,500   £117,500  £117,500
 Undisclosed £112,500   £112,500  £112,500
 Undisclosed £107,500   £107,500  £107,500
 Undisclosed £107,500   £107,500  £107,500
 Undisclosed £102,500   £102,500  £102,500
 Undisclosed £102,500   £102,500  £102,500

Full Report: https://assets.nationbuilder.com/taxpayersalliance/pages/17477/attachments/original/1648806766/Town_Hall_Rich_List_2022.pdf?1648806766

Council-by-council breakdown of data: https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fassets.nationbuilder.com%2Ftaxpayersalliance%2Fpages%2F17477%2Fattachments%2Foriginal%2F1648806321%2FTown_Hall_Rich_List_2022.xlsx%3F1648806321&wdOrigin=BROWSELINK

Press Release:

TPA’s Quids Inn campaign

The TaxPayers’ Alliance has called for tax cuts to support Britain’s pubs. They have also issued new beer mats, which will be distributed in pubs across the country urging punters to sign their petition. Speaking to the invited audience at the Barley Mow pub, chairman and founder of JD Wetherspoon Tim Martin was adamant that if Britain’s boozers are to survive, the government must help this struggling sector.

Dan was there to report:

“It was fantastic to be able to join the TPA for the launch of their “Quids Inn” campaign.  After the last 16 months of lockdowns everybody certainly deserved a drink!  The current VAT reduction really should be extended beyond September to enable the hospitality industry to recover from the pandemic.

It was also great to catch up with so many stalwarts of the cause of freedom.  It is clear we are going to have to work together to ensure a classically liberal approach to the nation’s post-Covid future.”  

Don’t forget to sign the petition.
More photos and details of the campaign: https://www.taxpayersalliance.com/cheers_quids_inn_campaign_launches_new_beer_mats_calling_for_cheaper_pints

TaxPayers’ Alliance, Town Hall Rich List 2021 – Croydon Press Release

Croydon leading the list of local boroughs with executives paid over £100K, according to report.

The TaxPayers’ Alliance have issued their 2021 Town Hall Rich List of council employees in the UK in receipt of over £100,000 in total remuneration.  The list covers the financial year 2019-20, and since then we have seen Croydon Council issue a Section 114 notice, declaring de facto bankruptcy.  It’s not hard to see why the council ended up in this position when despite years of complaining about a lack of funding, and years of maximum council tax increases, Croydon Council still had 19 people earning over £100,000 a year, with six people whose remuneration exceeded the salary of the Prime Minister.

To put this in context, neighbouring Bromley had just 9 staff whose remuneration exceeded £100,000.  Sutton had 10 staff, Merton 9, Tandridge 2, and Reigate & Banstead 6.  Whilst our inner London neighbours Lambeth had 18 and Lewisham 15 (both fewer than Croydon), Barnet a similar sized borough made do with just 9 staff on over £100K.

Private sector organisations often benchmark salaries against other similar organisations.  Indeed, within the council, schools are required to benchmark themselves on a range of financial measures against others similar schools.  We wonder if it has ever benchmarked their own executive salaries, and if it has, what conclusions they drew?  We can see why Croydon Council’s external auditors Grant Thornton described the situation at the council as follows:  “There has been collective corporate blindness to both the seriousness of the financial position and the urgency with which actions needed to be taken”.

The current council leader, and others in the cabinet were in the cabinet at the time these bumper salaries were being paid out.  What were they doing to control council expenses?  Of course we now know those councillors were in receipt of the highest average allowance in London.

Many things have changed at Croydon Council but the latest figures still show 16 people being paid over £100,000 and two on more than the nation’s Prime Minister.  Deep cuts are being made to front line jobs and services, can we say that is being reflected in the salaries of those at the top?

As council tax bills are landing in people homes, the people of Croydon who will pay for the mismanagement of the council budget have the right to ask, why we are being expected to once again pay more, when the those at the top of the council seem to be so well rewarded.

Croydon Council Pay over £100,000, 2019-20:

CouncilNameJob titleSalarySub totalPensionTotal
CroydonJo NegriniChief executive £189,165 £189,165 £29,193 £218,358
CroydonGuy Van DicheleExecutive director (interim) of health, wellbeing & adults £197,171 £197,171 £11,983 £209,154
CroydonShifa MustafaExecutive director, place £156,060 £156,060 £24,085 £180,145
CroydonJacqueline Harris-BakerExecutive director of resources and monitoring officer £153,936 £153,936 £23,795 £177,731
CroydonRobert HendersonExecutive director of children, families & education £148,886 £148,886 £22,986 £171,872
CroydonHazel SimmondsExecutive director of gateway, strategy & engagement £137,700 £137,700 £21,252 £158,952
Croydon Undisclosed  £157,500  £157,500
CroydonLisa TaylorDirector of finance, investment and risk and interim S151 officer £124,393 £124,393 £19,216 £143,609
Croydon Undisclosed  £137,500  £137,500
Croydon Undisclosed  £137,500  £137,500
Croydon Undisclosed  £137,500  £137,500
Croydon Undisclosed  £132,500  £132,500
Croydon Undisclosed  £117,500  £117,500
Croydon Undisclosed  £117,500  £117,500
Croydon Undisclosed  £117,500  £117,500
Croydon Undisclosed  £117,500  £117,500
Croydon Undisclosed  £117,500  £117,500
Croydon Undisclosed  £102,500  £102,500
Croydon Undisclosed  £102,500  £102,500

Full Report: https://d3n8a8pro7vhmx.cloudfront.net/taxpayersalliance/pages/17258/attachments/original/1617382775/Town_Hall_Rich_List_2021_Doc.pdf?1617382775

Council-by-council breakdown of data: https://d3n8a8pro7vhmx.cloudfront.net/taxpayersalliance/pages/17258/attachments/original/1617382651/Town_Hall_Rich_List_2021_Dataset.xlsx?1617382651