Croydon is grappling with a significant £34.2 million overspend, prompting the council to explore budget cuts and revenue-generating measures, including increased parking fees and debt collection. The Croydon council's Scrutiny Streets & Environment Sub-Committee convened on Tuesday, June 24, 2025, to address the dire financial situation and review proposed solutions.
The overspend, revealed in the Period 10 Financial Performance Report, necessitates the use of £51 million in capitalisation directions, £5 million from a risk contingency budget, and £16.9 million from corporate earmarked reserves to mitigate the deficit. The council's historic borrowing and debt burden, coupled with rising service demands, are cited as critical factors contributing to the financial strain.
To address the overspend, all service directorates have been tasked with reducing net expenditure. One proposed solution involves increasing parking income by £1 million through a combination of increased Penalty Charge Notice (PCN) income and improved debt collection. The price of a PCN increased by 23% on April 7th, rising from £130 to £160. Parking services are also working to improve debt collection rates by setting higher key performance indicators for external enforcement agencies and employing specialized digital enforcement agents to recover out-of-warrant debt.
The sub-committee also reviewed the June Cabinet Report on the Climate Action Plan. The plan outlines the council's commitment to reducing greenhouse gas emissions and enhancing environmental sustainability. Since the original Carbon Neutral Action Plan was approved in February 2022, the council has made progress in several areas, including supporting households through the Croydon Healthy Homes service, planting new trees, and increasing naturalized grass areas. The plan considers affordable, enhanced, intermediate and aspirational options, with estimated costs ranging from £3.2 million to £368.6 million.
The Streets & Environment Sub-Committee also reviewed its work programme for 2025-2026, including items such as the Stabilisation Plan, Climate Action Plan, Waste Contract Management & Mobilisation, and Budget Scrutiny Challenge.