Croydon Council proposes £568m budget with 4.99% tax rise
Proposals to be discussed by Cabinet on 14 October, with public engagement starting 19 October.
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Croydon Council has outlined its proposed budget for 2027/28, totalling £568 million. This budget aims to support essential services for the borough's 410,000 residents, including child protection, waste collection, and street cleaning, while continuing the council's financial recovery efforts.
Council Tax and Financial Strategy
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The proposal would save £970,000 a year, affect over 7,000 homes and is open for comment until November 2026
The proposals include a 4.99% increase in council tax. This comprises a 2.99% general increase and a 2% precept specifically for adult social care, a measure expected by central government for all councils. The council stated this increase is intended to remain within the limits set by the government for London boroughs.
Croydon Council is working with government-appointed commissioners to meet its Best Value Duty. The financial strategy focuses on reducing costs in key spending areas, improving efficiency, and generating income. These measures are necessary to address historic financial failures and build long-term sustainability, despite rising demand and inflationary pressures on services like social care and support for children with special educational needs.
Hammersmith and Fulham council tax could rise 150%
A finance report outlines potential increases to address a 40% budget shortfall.
Initiatives such as the rollout of LED street lighting are expected to save approximately £1.9 million annually and reduce energy consumption. The council is also exploring income generation, such as accepting trade waste at Household Reuse and Recycling Centres, which could also extend opening hours.
The council forecasts that borrowing will decrease from £120.7 million in 2027/28 to £76.3 million by 2030/31. This reduction is part of the effort to make the council more financially stable. The council has been relying on Exceptional Financial Support from central government since 2020, which incurs annual repayment costs of around £95 million.
Next Steps for the Budget
These proposals are currently in draft form and are not final decisions. The Croydon Council Cabinet is scheduled to discuss the budget proposals on Wednesday 14 October. Following this meeting, public engagement on the budget will commence on 19 October, providing an opportunity for residents, businesses, and community groups to share their views before final decisions are made in February.
I know household budgets remain under pressure. Our proposed Council Tax increase is 4.99%, and we have ruled out going above the normal government limit because that would place an unfair additional burden on residents.
Jason Perry, Executive Mayor of Croydon
Executive Mayor Jason Perry stated that the budget marks an important next stage in the council's financial journey, emphasising a focus on prevention and early intervention to improve resident outcomes. He acknowledged the need for difficult choices but committed to transparency and taking responsibility for decisions.
Questions this report answers
+What is the proposed budget for Croydon Council in 2027/28?
Croydon Council is proposing a budget of £568 million for the 2027/28 financial year. This funding is intended to cover essential services for the borough's residents, including social care, waste collection, and maintaining safe streets.
+How much is the proposed council tax increase in Croydon?
The council is proposing a 4.99% increase in council tax. This is made up of a 2.99% general increase and a 2% adult social care precept. The council stated this is to help fund services while remaining within government limits.
+When can residents give their views on the budget proposals?
Public engagement on the budget proposals will open on 19 October. This follows a discussion by the council's Cabinet on 14 October. Residents, businesses, and community groups will have the opportunity to share their feedback before final decisions are made.
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