The government has taken the extraordinary step of dispatching commissioners to assume partial control of Croydon Council, citing deepening financial instability and a failure to meet statutory obligations—despite fierce opposition from Mayor Jason Perry.

Four commissioners, led by Gerard Curran, will now hold sweeping authority over the council’s leadership, governance, financial management, and senior appointments. The unprecedented intervention grants them the power to override local decisions deemed inconsistent with Croydon’s legal duties.

The move follows growing alarm within Whitehall over the borough’s deteriorating finances. Last month, Minister for Local Government Jim McMahon warned Croydon’s fiscal position was “deteriorating rapidly” and called for a “short, sharp reset.”

On Thursday, McMahon formally triggered powers under the Local Government Act 1999, stating the council had failed to meet its Best Value Duty—a legal requirement to deliver effective and efficient services.

“I have concluded that it is both necessary and expedient to intervene,” McMahon said, adding that the commissioners will have authority to “oversee, challenge, and, where necessary, direct” the council’s core functions. Whitehall-appointed officials may now assume decision-making in key areas, while elected councillors will remain in their positions.

The intervention, expected to last up to two years, follows a period of supervision by the government’s Improvement and Assurance Panel (IAP), established after Croydon effectively declared bankruptcy in 2020 by issuing a Section 114 notice. However, the Department for Levelling Up, Housing and Communities deemed this oversight insufficient.

Despite Mayor Perry’s public insistence that his administration is “not failing,” Croydon’s financial figures present a starkly different picture. The council overspent by £30 million in the last financial year and required £136 million in emergency support just to remain solvent. Since 2021, Croydon has received a staggering £553 million in government bailouts.

The borough is also labouring under a £1.6 billion legacy debt, costing £70 million annually in servicing costs alone.

Mayor Perry, who has described the intervention as “unfair” and “disproportionate,” criticised the Government’s decision in a statement on Thursday. “It does not feel fair or consistent with the lighter-touch approaches taken elsewhere,” he said, pointing to what he described as Croydon’s “serious, credible” improvement plans.

“We have made major strides in rebuilding this organisation since the catastrophic collapse in 2020,” Perry added, lamenting that the council’s progress has not been recognised.

Perry, a Conservative, has faced criticism for what some have called a combative tone in dealing with central government. Last month, he labelled the proposed intervention a “naked political attack” and vowed to oppose commissioners if they attempted to raise council tax beyond the cap or impose further cuts to frontline services.

Labour councillor and Croydon mayoral challenger Rowenna Davis offered a starkly different take. “Three years into this Conservative mayor’s leadership: council tax has gone up, the budget gap has grown, and our services have been hollowed out,” she said. “Today, the government has said enough is enough.”

Davis said she would work “constructively” with commissioners to “get Croydon back on its feet.”

The commissioner team includes Debra Warren, Jackie Belton, and Councillor Abi Brown OBE, who will provide political and governance oversight. A formal review will take place after 12 months. If sufficient improvement is seen, some powers may be handed back to the council earlier than planned.

Croydon Council will also be required to fund the intervention, including administrative and logistical support for the commissioners.

The announcement came as part of a wider government statement, which also confirmed intensified oversight for Thurrock, Dudley, and Liverpool councils—all of which are under scrutiny over governance and value-for-money standards.

Despite 35 formal objections to the intervention—including from local charities and civic groups—Croydon now enters a new phase of externally guided recovery, with its future direction steered, at least for now, from beyond the borough’s walls