Open Letter to Patsy Cummings about Croydon Council Finances
Croydon Council has declared bankruptcy, an avoidable disaster. The Conservatives have been warning about risky investment decisions and poor financial control for many years, but Labour have been in denial.
As someone hoping to represent us on the London Assembly, scrutinising the London Mayor’s multi-billion pound budget and decisions which could affect the whole of London, what is Patsy doing now to show her capability for the job?
Neil Garratt
Conservative London Assembly Candidate for Croydon and Sutton
36 Brighton Road
Purley
CR8 2LG
14 November 2020
Dear Patsy,
I’m sure you will be as concerned as I am about the terrible news of Croydon Council issuing a section 114 notice, effectively declaring itself bankrupt. It means all discretionary spending is frozen, residents are concerned about their services and council staff are worried for their jobs.
You are seeking to represent Croydon and Sutton on the London Assembly, a job that’s all about scrutinising spending, challenging decisions, and to standing up for residents’ concerns.
During your time as a Councillor in Croydon, the Administration has made several risky property investments, which are now a big part of the Council’s financial mess. There was the £29.8 million to buy the Croydon Park Hotel, which is now defunct. What is happening to that money? Then £46 million was spent buying The Colonnades. Did you think that was a good decision? As a member of the ruling Administration, what did you do to satisfy yourself that these were sound investments? And what are you doing now to ensure the public does not lose money on these deals?
But towering over both is the £200 million Council loan to Brick by Brick, the Council’s controversial in-house builder. When the Council’s Chief Financial Officer set out her reasons for declaring the Council bankrupt, she listed the “greater danger than previously anticipated around Brick by Brick being able to make interest and dividend payments due to the Council this year and for previous years.” This is alarming: the annual interest on a £200 million loan runs to many millions, and why is interest due in previous years still unpaid?
Have you investigated this, to find out how much interest might be due but not paid? Or raised concerns about the reasons for Brick by Brick not paying its debts on time? Are you satisfied that Croydon Council are on top of this situation and taking care of taxpayers’ money?
As someone seeking senior political office as a London Assembly Member, a role focused on scrutinising spending and decisions, people will look to you to step up, and I look forward to hearing what action you’re taking in your current role as a Councillor both to satisfy yourself of the situation and to stand up for Croydon residents.
Yours sincerely,
Neil Garratt
Conservative London Assembly Candidate, Croydon & Sutton