Croydon Council is demanding cash strapped NHS Croydon pay up for services provided on its behalf.

Council Chief Executive Jon Rouse has written to his NHS Croydon counterpart demanding health services in the borough are protected.

The response comes a month after The Croydon Guardian revealed NHS Croydon is facing a £23m black hole after a massive overspend went unnoticed.

Council leader Coun Mike Fisher read out a statement at a cabinet meeting on Monday December 12 attacking the Trust.

He said: "It has come as a profound shock and disappointment to the Council to find NHS Croydon's financial management has not been what it seemed."

He questioned how the overspend, believed to be about £30m was missed and demanded the error did not impact on the borough He said: "We are insisting the NHS pay up in full for services we have already provided on their behalf."

A spokesperson from NHS South West London said: “We are taking robust action to resolve this situation. In Croydon PCT we are developing a detailed action plan to get back into balance and ensure robust financial planning for the future to live within the funding we are given each year from central government."

NHS South West London has launched a whole scale review of its services to cope with massive budget cuts.

A&E, maternity and paediatric wards across South West London could close due to a lack of senior doctors.

Clinicians asked to provide ideas for improving health service in Croydon, Sutton, Merton, Wandsworth and Kingston recommended wards close to meet minimum guidelines on staffing of consultants.

A draft report shows of the four hospitals in the area, including Croydon University Hospital, all were classed as weak for their level of maternity cover.

A Care Quality Commission inspection on December 2 also found the University College Hospital’s maternity unit may not always be able to provide adequate care during busy periods.

It states: “The feedback we received from people also indicated that they had not always received care and treatment which met their needs and welfare.”

Clinicians consulted also recommend the number of general walk-in paediatric wards drop from four to two, or even one, with specialised children’s A&E units set up alongside general units as an alternative.

They advise A&E units should be open 24 hours a day seven days a week, and to reach correct senior doctor staffing numbers already below guidelines, at least one should close, or more doctors be recruited.

Dr David Finch, local GP and Joint Medical Director for NHS South West London, said: “This is the latest stage in a detailed review. “These are not formal consultation documents, but we do welcome comments.

“The clinical working groups will meet again in January to consider feedback received.

“Local doctors and nurses leading the review are eager to get out and talk to local people and organisations to discuss local health services and why they need to change.”