Debt-ridden council denies plan to sell major cultural venue

London Borough of Croydon is not planning to sell one of its major cultural venues, its mayor has said.

In a statement released online, Mayor Jason Perry said the arts centre Fairfield Halls, which regularly hosts theatre, concerts, comedy, dance and conferences, is “not on any list of council-owned properties to be sold”.

His statement follows claims the council may be forced to sell the arts venue made by a government-appointed improvement and assurance panel that has been working with the council since it declared effective bankruptcy over four years ago.

“At no time have we been instructed by our government-appointed panel, or by the government, to sell it,” Perry added.

“Instead, as agreed with our government panel, we’re working with the operators to help ensure the venue’s success, now and in future.”

According to an investigation published by Inside Croydon, council members were told during a briefing that the government panel was recommending Fairfield Halls be sold as part of measures to reduce the council’s budget deficit.

The report adds the council’s current overspend is nearing £100m, “without any real prospect of plugging its financial black hole”.

A spokesperson for the Ministry for Housing, Communities and Local Government, to which the panel reports, told Inside Croydon that the panel “continues to work with the council to identify suitable properties to include in the asset disposal programme”.

“Developing a viable and sustainable business plan for Fairfield Halls that delivers best value to the residents of Croydon is part of the agreed exit strategy, which the council, in conjunction with the panel, continues to progress,” the spokesperson added.

The panel’s exit strategy, in place since late 2023, is aiming to bring its involvement with Croydon Council to an end by July this year.

Earlier this week, classical music news site Slipped Disc reported the government has made the sale of council assets a condition of its bailout, adding “Croydon is no longer in a position to determine the hall’s future”.

‘Financial failings’

Since opening in 1962, Fairfield Halls has been one of south London’s leading arts venues. It closed in 2016 for refurbishment works expected to take two years and cost £30m, but ended up costing £72m and taking a year longer than scheduled.

A report published in 2022 highlighted a series of “financial and legal failings” during the refurbishment, placing the blame with the council.

Inside Croydon’s latest report adds that the refurbishment “[proved] to be one of the major factors in the council’s financial collapse”.

The council was forced to declare bankruptcy in 2020 amid debt totalling £1.5bn. Shortly after this the government appointed the improvement and assurance panel to oversee and challenge the council’s financial recovery.

The panel has since submitted eight progress letters to the government. Its most recent letter, from November, said that following an independent review into the future options for Fairfield Halls and following ongoing discussions with the external operator, “there are grounds for greater optimism about its future viability”. 

“Further grant funded investment is planned in the surrounding area, designed to enhance the appeal for both participants and the public,” the letter adds.

Borough of Culture legacy

Question marks over Fairfield Hall’s future ownership come not long after Croydon’s stint as London Borough of Culture.

The year-long programme, which ran from April 2023 to March 2024, was delivered in partnership between the council and local arts organisations, including a total 114 partners and over 2,750 creatives.

An impact report, published in July last year, said the opening event arranged by London Mozart Players, who are based at Fairfield Halls, helped the venue enjoy its largest audience numbers since its post-refurbishment reopening.

The venue hosted a range of events throughout the programme, including a performance by the National Symphony Orchestra of Ukraine accompanied by an art exhibition led by Ukrainian refugees, and the final of a year-long Croydon Young Composers project which showcased more than 100 young musicians.

The council budgeted £850,000 during the current financial year for a London Borough of Culture legacy programme, for projects including an annual festival event in the borough’s centre and new signage to support cultural venues.