Croydon Council's annual spending on agency staff has more than doubled from £22 million to £55 million over four years, sparking fierce criticism from the opposition. Labour group leader Stuart King described the increase as a 'staggering failure to protect taxpayers and secure value for money'. However, Mayor Jason Perry defended the rise, arguing that temporary staff are essential for the council's financial stabilisation plan.
Mayor defends agency spending amid rising costs
Speaking at the full council meeting on Monday, July 20, Mayor Perry acknowledged the increase during his tenure but insisted spending is now falling. 'There has been a very strict focus around agency spend,' he said. He stressed that temporary workers remain crucial to running a council of Croydon's size, particularly for essential services.
The issue was raised by Councillor King as his first question to the Mayor. He told the chamber that agency spending had 'started rising rapidly' after Mayor Perry first took office in May 2022. 'Despite numerous warnings that you needed to act, your administration was soon spending an astonishing £55 million a year,' King said.
Stabilisation plan aims for 25% cut
Reducing agency spend is a key part of Croydon's stabilisation plan, introduced in April 2025 at the request of the then Secretary of State for Local Government and English Devolution. The plan aims to cut cross-departmental agency staff spending by 25% by the end of the 2027 financial year. Mayor Perry said progress is being made on this plan but rejected calls to set 'measurable targets' for reductions by the end of the year.
Councillor King pushed back, noting that government-appointed commissioners—who will oversee Croydon's finances and senior management until at least July 2027—have also raised concerns about agency spending. 'We welcome the commissioners' requirement that the council needs to put in place clear plans for every service to reduce their agency spend. We would go further and actually set departmental targets,' King said.
Mayor refuses to commit to specific targets
When asked if he would introduce and publish specific measurable targets for reducing agency spending by the 2026/27 financial year, Mayor Perry refused. 'To suggest that we will never use agency spend going forward is not how you run a sustainable local authority,' he said. He explained that agency staff are often needed for hard-to-fill vacancies, departmental reorganisations, and time-limited grant-funded projects. In some cases, agency workers later become permanent employees.
'So I guess the simple answer is no, we cannot, and I cannot commit to that. What I do commit to is that we are reducing agency spend, that percentage of spend is already coming down, and that volume and pound notes of spend is already coming down,' Perry added.
Political clash over council's financial management
Councillor King described Mayor Perry's defence as 'hysterical' and argued that the increase represents a failure to protect taxpayers. The exchange highlights ongoing tensions over Croydon Council's financial management, which has been under scrutiny since the council issued a section 114 notice in 2020. The stabilisation plan and commissioner oversight are intended to restore financial sustainability, but the agency spending debate shows divisions remain over how to achieve that goal.
