Council fails in bid to secure injunction against local website over confidential reports but nets undertaking on future publication

The London Borough of Croydon has failed to secure an injunction against a local news website that reported on confidential papers, but has gained an undertaking that nothing future will be published.

Inside Croydon published extracts from a report by local government troubleshooter Richard Penn related to where responsibility lay for events around the council’s 2020 bankruptcy.

Editor Steven Downes has said Mr Justice Nicklin in the High Court refused an injunction to remove the material on the basis that this would be like “trying to put the genie back in the bottle”.

He said though that the council might seek costs from him and has set up a Go Fund Me page named ’Kerswellballs’ a reference to council chief executive Katherine Kerswell. Mr Downes has been contacted for comment.

A Croydon Council spokesperson said: “Two confidential reports were automatically published online following an unknown software error – both were removed within two hours of being notified of their release.

“Given the reports contained confidential legal advice relating to ongoing matters, the council took legal action to protect the confidentiality of this advice.

“We have taken the necessary steps to avoid any recurrence and have also notified the software provider who are addressing the issue.”

Croydon said Mr Downes gave an undertaking to the court not to publish any further information from the confidential material and could be held in contempt he did so.

A paper for Croydon’s Appointments and Disciplinary Committee this month said the council wished to publish as much as possible of Mr Penn’s report but a ‘maxwellisation process’ was still in progress under which those criticised may respond first.

It also said a separate report by private investigation firm Kroll was due this month into how Brick By Brick - a housing company formerly owned by the council - came to win a contract to refurbish local venue the Fairfield Halls.

“Kroll’s investigation will aim to provide clarity over the probity and integrity of decision making around the Fairfield Halls project, the reasons for the cost overrun and late delivery and the governance failures and whether there is evidence of potential wrongdoing by relevant individuals”, the report said.

The committee report said the council had sought to recover leaked copies of the Penn report from those thought likely to possess them but “no copies have been received”.

Croydon issued a section 114 notice in 2020, which prevents all non-essential spending, in the face of a £66m deficit. It said it could not then meet the legal requirement to balance its budget.