Cancel Croydon’s Debt
The Issue
Croydon UNISON call on the government to cancel Croydon’s outstanding debt due to it being unsustainable.
The debt is currently £1.4 billion with interest repayments of £71 million a year.
The interest payments represent 20% of the council's annual budget which was £350 million for the 2025/26 year.
Croydon is the largest London borough by population with over 390,000 residents also putting more pressure on the council to provide for all those that live here.
In the 2022/23 financial year, Croydon received government grants equivalent to approximately £239 per resident, while Lambeth received approximately £482 per resident - a difference of over £240 per person. In 2025 this disparity still exists.
The council debt is unsustainable and is affecting the provision of essential council services including the closure of the Youth Engagement Team which was dealing with reducing knife crime and gang related activities and the shutting of four libraries.
It is also putting immense pressure on council staff to carry out their jobs after seeing staff numbers being cut and numerous restructures being made including housing a desperately needed service to try and save money.
Residents are having to incur high council tax increases while seeing services reduced or cut completely due to no fault of their own.
The debt was not down to council workers or local residents but due to management errors that led the council needing to be bailed out by the government after 3 section 114’s were issued. Two of these being in 2020 and a third one in 2022.
Financial pressure were also put on the council to find alternative ways of raising income due to the fact central government has severely cut its grant to local authorities over the last 10 years or more. The Local Government Association (LGA) has issued recommendations as it appeals for a better settlement from the central government for its members. The case for proper, fairer funding for local councils like Croydon is vital.
The Croydon TUC which Croydon Unison are affiliated to support us in our petition.
Croydon workers and residents deserve better so please support us by signing our petition today.
We are aiming for 10,000 signatures to get a response from the government and if we manage 100.000 signatures we can ask for a debate in parliament.
For reference: https://democracy.croydon.gov.uk/documents/g4292/Public%20reports%20pack%2023rd-Jul-2025%2018.30%20Cabinet.pdf?T=10
The finance report is on pages 47 to 90. The tables showing the debt are on pages 73-74.
Please visit the following web sites for updates:
https://www.croydontuc.org.uk/
436
The Issue
Croydon UNISON call on the government to cancel Croydon’s outstanding debt due to it being unsustainable.
The debt is currently £1.4 billion with interest repayments of £71 million a year.
The interest payments represent 20% of the council's annual budget which was £350 million for the 2025/26 year.
Croydon is the largest London borough by population with over 390,000 residents also putting more pressure on the council to provide for all those that live here.
In the 2022/23 financial year, Croydon received government grants equivalent to approximately £239 per resident, while Lambeth received approximately £482 per resident - a difference of over £240 per person. In 2025 this disparity still exists.
The council debt is unsustainable and is affecting the provision of essential council services including the closure of the Youth Engagement Team which was dealing with reducing knife crime and gang related activities and the shutting of four libraries.
It is also putting immense pressure on council staff to carry out their jobs after seeing staff numbers being cut and numerous restructures being made including housing a desperately needed service to try and save money.
Residents are having to incur high council tax increases while seeing services reduced or cut completely due to no fault of their own.
The debt was not down to council workers or local residents but due to management errors that led the council needing to be bailed out by the government after 3 section 114’s were issued. Two of these being in 2020 and a third one in 2022.
Financial pressure were also put on the council to find alternative ways of raising income due to the fact central government has severely cut its grant to local authorities over the last 10 years or more. The Local Government Association (LGA) has issued recommendations as it appeals for a better settlement from the central government for its members. The case for proper, fairer funding for local councils like Croydon is vital.
The Croydon TUC which Croydon Unison are affiliated to support us in our petition.
Croydon workers and residents deserve better so please support us by signing our petition today.
We are aiming for 10,000 signatures to get a response from the government and if we manage 100.000 signatures we can ask for a debate in parliament.
For reference: https://democracy.croydon.gov.uk/documents/g4292/Public%20reports%20pack%2023rd-Jul-2025%2018.30%20Cabinet.pdf?T=10
The finance report is on pages 47 to 90. The tables showing the debt are on pages 73-74.
Please visit the following web sites for updates:
https://www.croydontuc.org.uk/
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Petition created on 24 November 2025