Croydon last night (6 March) approved a balanced budget for 2024/25 as the council builds on strong progress in fixing its finances and continues its journey to improve services for residents.
Croydon has developed its 2024/25 budget based on listening to local people, with hundreds of local people sharing their views in a recent survey.
This year the council will provide hundreds of everyday services for residents, spending most on protecting vulnerable children and adults – residents’ top priorities.
The budget also includes £5m investment in becoming a more efficient, modern council that is cost-effective, and provides good customer care.
Croydon has approved a 2.99% rise in council tax, in line with the cap that the government sets for London boroughs. This is together with the 2% increase for adult social care that the government expects all local authorities to charge.
This means that there is a total council tax increase of £2.45 a week for a Band D property in Croydon. The budget includes help for those who may need additional financial support – more information at www.croydon.gov.uk/benefits/council-tax-support
Croydon continues to face serious financial challenges and the authority carries a £1.4bn debt burden as a legacy of past mismanagement. Despite this, the council is robustly managing its budget.
To keep on the road to financial recovery, this year’s budget includes savings of £30m. The council will also sell land and buildings as part of its asset disposal programme, to prevent the cost of borrowing rising further.
Even with this, the council’s debt leaves the authority with an annual £38m budget gap, meaning that it requires exceptional financial support. The government has confirmed Croydon’s £38m capitalisation direction for 2024/25, and the council is continuing its conversations with them about a more permanent solution for Croydon.
Read the budget report in full here.
“As Mayor I promised to fix the Council’s finances and restore pride in our borough. In their recent letter, the Government has said that Croydon is making good progress, and that we have ‘stepped up a gear’. We have set a budget for 2024/25 that builds on this.
“Local authorities are facing huge challenges – from rising demand for services, to cost of living pressures. In Croydon, these are compounded by the dire financial situation I inherited and the Council’s £1.4bn debt burden. This debt will cost the Council £62m this year and is our third highest spend after adults and children’s social care.
“Despite these challenges, we are listening to our residents, and we are tightly managing the parts of our budget that are within our control. Croydon is the only council in government intervention that has not been taken over by government commissioners, and unlike most is not raising council tax above the limit this year.
“The Council still needs to make changes, but we have achieved much. I am determined that we will become a Council that provides value for every penny of taxpayers’ money that we spend, and a Croydon of which we can all be proud.”
Jason Perry, Executive Mayor of Croydon
