After effectively declaring bankruptcy recently, Croydon Council said they would consult with residents in the borough over a plan to stabilise the council's fragile finances.

In a statement published by the council Monday (November 23), a spokesperson said that the council planned to cut back on spending and focus on "quality core services".

It was accompanied by the 'Croydon Renewal Plan' drafted by councillors outlining their plans to stabilise the council's finances after it formally issued a Section 114 notice that "effectively" means the council was bankrupt.

The renewal plan will be reviewed by cabinet officials on Wednesday evening (November 25).

If approved, residents are being urged to take part in the decision making process through an "independently chaired improvement board" to be set up, whose members would hold councillors to account on delivering the new financial programme.

"Croydon’s renewal plans published here today include proposals for the borough’s financial recovery and savings for public consultation, which would enable it to become a financially sustainable council by 2024.

"This means the council needs to consider stopping some services and changing the way it delivers others, reducing the number of staff it has," a spokesperson said on Monday, confirming the council are looking to cut spending in a number of areas in the years and months ahead.

"The new administration will prioritise clean, safe streets, protecting the most vulnerable residents, and tackling ingrained inequality and poverty – while delivering value for money," the statement added.

The plan was released days after an independent review found the council's affiliated housing developers Brick By Brick needed "substantially improved financial oversight", and that its "loan portfolio has not been properly managed", with many of the loans taken on by BBB found to have "breached their repayment dates".

Croydon Council Leader Hamida Ali described the council's situation as an "unprecedented financial crisis" speaking just weeks after inheriting the role from Cllr Tony Newman, who resigned in October.

"Our absolute priority is to balance our books, live within our means and offer the good value for money services our residents need and expect from us.

"To achieve this we will have to do less but do it better...

"We know some of these choices will be incredibly difficult and we are committed to working with our staff, partners and residents, keeping them informed and involved every step of the way," she said.