Croydon (Parliament Politics Magazine) – Katherine Kerswell has resigned as Chief Executive of Croydon Council after five years in the role, marking a major leadership change.
The council affirmed that after her contractual notice period, she will not be paid.
Her departure coincides with the authority’s continued financial difficulties. The council has continued to be governed by the government after issuing two Section 114 notifications during Kerswell’s term, which are official declarations that the council could no longer balance its budget.
Commissioners were appointed by the Department for Levelling Up, Housing, and Communities in July to assume some of the council’s responsibilities, such as managing finances and supervising senior employment. Following the council’s initial Section 114 notification in 2020, an Improvement and Assurance Panel has been keeping an eye on developments.
Ms Kerswell was appointed as Croydon Council’s permanent Chief Executive in May 2021, after serving in the role on an interim basis following the resignation of her predecessor, Jo Negrini, in August 2020.
Executive Mayor of Croydon, Jason Perry, thanked Ms Kerswell for her service, stating:
“Katherine is leaving Croydon Council after serving as Chief Executive for five years. Having joined Croydon at an incredibly challenging time, she has led our workforce through a period of unprecedented and rapid change and improvement.”
He outlined a number of accomplishments that occurred while she was in office, such as the council receiving a Good Ofsted rating for its children’s services, a favorable Care Quality Commission assessment, and the Social Housing Regulator lifting a voluntary undertaking.
“Katherine has worked tirelessly to support the improvements that residents expect and deserve,”
he stated.
Additionally, the resignation was made the same week that the council received a statutory recommendation from external auditors Grant Thornton, which is a formal warning that calls for immediate action. According to the report, plans to make Croydon financially sustainable have “deteriorated” and the city’s financial situation is still “unsustainable”.
Over the course of the previous year, the amount borrowed from the central government to bolster council finances increased significantly, from £51 million to £136 million. According to auditors, the council might not be able to continue essential services or make the necessary savings if historic debt and structural expenditures are not resolved in the long run.
Better pension fund administration, advancements in housing services, and efforts to enhance complaint handling were among the other changes that were mentioned. All of the auditors’ suggestions have been approved by the council, and they will be discussed at the full council meeting next week (September 22).
Mayor Perry responded to the report by saying:
“Grant Thornton’s report is absolutely right to highlight the elephant in the room, Croydon’s historic debt. The government and the council need to work together on a long-term solution.”
According to Croydon Council, plans are being made to fill the position of Chief Executive, and more information will be confirmed when the time comes. The senior leadership group, which includes the Deputy Chief Executive, is still in place in the meantime.
What impact will Kerswell’s resignation have on Croydon’s recovery efforts?
Kerswell’s resignation is likely to make it more challenging for Croydon to recover from the council’s financial crisis and leadership issues, but the resignation creates a short-term instability issue.
Croydon is experiencing sustained overspending relative to its budget, increasing debt (that is projected to hit £2.2 billion by 2027) and has been under attack for Kerswell’s ineffectiveness in leading. The departure of several senior executives has also provided an indication of unreliability.
Mayor Jason Perry is confronted with political pressures regarding the timing and circumstances surrounding Kerswell’s departure since he will incur significant costs in severance and politically sensitive considerations as a result of the pending local elections.
