Cash-strapped Croydon Council goes bust after 'running up £1.5 billion in debt', says local MP

Credit: Google Street View

Croydon Council has gone bust after running up £1.5 billion in debt, according to local MP Chris Philp.

In statement the council acknowledged it faced "severe ongoing financial challenges" and all new non-essential spending would be scrapped.

In a letter to councillors, finance director Lisa Taylor outlined the serious issues facing the council which cannot balance its budget this year, which it is required to do by law.