Title

FINANCE

No pay-out for suspended director

Croydon LBC’s suspended executive director of place has resigned with no pay-out, The MJ understands.

Croydon LBC's suspended executive director of place has resigned with no pay-out, The MJ understands.

Shifa Mustafa was one of a number of executive directors suspended in February pending an investigation into potential wrongdoing at the authority that led to the collapse of its finances.

Executive director of health, wellbeing and adults, Guy Van Dichele, left earlier this year and is bringing claims for constructive dismissal and discrimination.

A council spokesperson confirmed that executive director of localities, Hazel Simmonds, who was also suspended, remained a council employee but they would not elaborate further on her status.

Last month Croydon's appointments committee privately agreed to begin an independent investigation into the conduct of the corporate management team but it will only be able to look into Ms Simmonds as all others members of staff in scope have left the council.

Finance director Lisa Taylor and borough solicitor Jacqueline Harris-Baker have also resigned in recent months.

Despite the lifting of Section 114 notices issued last year, in practice spending controls remain in place as the council struggles to balance its budget, with a panel to monitor expenditure meeting twice daily.

According to latest estimates, Croydon is forecast to overspend its budget by the end of the financial year with the gap standing at £590,000 after taking into account use of the COVID-19 grant from the Government.

Officers have identified ‘opportunities' that could mitigate the overspend by £8.7m, but face risks that could widen the budget gap by £11.8m – leaving a potential overspend of £3.7m by the end of 2021-22.

Reduced income from parking and increased costs of special education needs transport have contributed to the financial difficulties, in addition to planned savings totalling £1.7m now being in doubt.

Croydon has been granted a capitalisation direction worth up to £70m for 2020/21 and £50m for 2021-22.

FINANCE

Invisibility will be the mark of good stewardship

By Tracy Bingham | 03 August 2026

Leaving a lack of 'unpleasant surprises' will be the true mark of a successful transition following reorganisation, writes Tracy Bingham

FINANCE

CIPFA report uncovers 'weak financial management' at Hillingdon

By Martin Ford | 31 July 2026

Hillingdon LBC must change course to avoid relying on exceptional financial support (EFS) for years to come, a report has concluded.

FINANCE

Will Burnham's drive to build homes be successful?

By David Blackman | 28 July 2026

Like several Prime Ministers before him, Andy Burnham has pledged to build new homes. That will not happen without local authorities and they have been out o...

FINANCE

The restoration of hope within local government

By Blair McPherson | 20 July 2026

Blair McPherson looks at the emotional balance sheet of local government following continual rounds of savings, and at how to restore hope and lead renewal.

Martin Ford

Popular articles by Martin Ford