The Government is conducting a rapid review into Croydon Council, focusing on its government, culture and risk management.
The non-statutory review comes in the wake of a damning public interest report that found ‘serious concerns’ about its financial decision making and governance over a number of years.
The council is also seeking exceptional financial support from the Government after warning there was a risk it may be forced to issue a Section 114 notice.
Local government secretary, Robert Jenrick, said: ‘The situation at the London Borough of Croydon is deeply concerning and completely unacceptable – local people rightly deserve and expect better than this from their local council leaders.
’The public interest report published this week is damming about the dysfunctional governance within Croydon Council, who have been entirely irresponsible with their spending and investments. There are serious questions that local leaders to answer, and we are stepping in to get the situation under control.’
The council has said it 'fully accepts' the findings of the report and will act on all 20 recommendations for change.
Cllr Hamida Ali, leader of the council, said: 'The council has already taken significant action as part of our Croydon Renewal plan such as commissioning an independent review of our companies to ensure we are fully aware of all the issues we face.
'I very much welcome this rapid review and the team of experienced senior local government professionals who will be working with us.'