Croydon Council could wind up economic development body in wake of recession (From Croydon Guardian)

Croydon Council could wind up economic development body in wake of recession

4:34pm Friday 2nd July 2010 in

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The body responsible for regenerating Croydon and helping small firms grow could be wound up by September due to the borough's cash-flow crisis.

Croydon Economic Development Company(CEDC) is under threat after the council announced it needed to make £70m of savings over the next four years as the country struggles out of the recession.

Croydon Council’s cabinet will decide whether to pull the plug on a series of economic growth projects during their next meeting on July 12.

Almost £5m is set to be slashed from the council’s grant from central Government, around half of which goes towards the £8m spent each year on economic growth and investment in the borough.

The council’s marketing functions and the business planning service are also set to be scrapped under the proposals.

Simon Hoar, cabinet member for regeneration and economic development, said: “The CEDC has been an asset in bringing investment opportunities to Croydon and we will continue much of that work.

“But in light of the reductions in funding for economic growth, we simply cannot continue to fund some of these projects, or to support the CEDC at its present level.

“Taxpayers want a leaner, more efficient local government which focuses on value for money, and we are determined to deliver it.”