Croydon has approved a budget that will help stabilise council finances, whilst protecting services, making the borough cleaner and safer, and promoting economic growth.
Like many councils, Croydon is facing unprecedented funding pressures owing to increased demand for homelessness help and social care. The Council is one of 30 local authorities requiring exceptional financial support from the Government this year.
On top of this increased demand, Croydon’s circumstances are among the most challenging of any council in the UK, owing to an historic £1.4bn debt burden which will cost £71m this year.
Full Council last night approved a budget which includes local action to respond to these serious challenges, but not by cutting frontline services or raising Council Tax above the referendum cap.
Instead, in 2025/26 Croydon will invest in overhauling the way the council works, modernising services and becoming more cost effective and efficient for residents.
The budget sets out how the Council will do this whilst protecting local services. Changes will include using new digital tools to improve processes for residents and staff, working more closely with charities and partners, focusing on preventative action to avoid people reaching crisis point and managing demand.
The Council will deliver these changes over the next four years, and by 2028-29 they will save £27.7m per year, whilst delivering better outcomes for local people.
The budget also includes immediate action to stabilise the council finances, with £22m savings next year and investment to reduce costs – including through the purchase of Zodiac House to provide 71 temporary accommodation units. The Council will also continue to maximise income from land and buildings, whilst protecting Croydon’s heritage for future generations.
In line with the Executive Mayor’s pledge not to raise Council Tax above the cap, Croydon has agreed a council tax increase of 2.99%, together with the 2% increase for adult social care that the Government expects all councils to charge. As the Greater London Authority (GLA) precept has increased by 4.03%, this is a total increase of £2.18 per week for a Band D property in Croydon.
Croydon’s budget also includes investment in essential services like social care, decent council homes, with a focus on regeneration and the economy.
Clean, safe streets were a top priority for residents in the budget engagement. Initiatives in 2025/26 include a new waste contract and the Cleaner Croydon campaign, with blitz cleans in local high streets, and stepped-up enforcement against fly tippers and other environmental criminals.
“Like all councils we are facing serious financial challenges owing to increased, unsustainable demand for our services and costs. And, like others, we await national action on these in the Government’s comprehensive spending review.
“But in the meantime, we are acting locally to respond to these unprecedented challenges.
“We have set a budget that will change the way we do business, protecting services by modernising our Council. We will become more cost effective and efficient, and deliver better services for residents, customers and partners.
“And whilst we change our Council, we will also focus on our place. We will invest in our borough’s future, with new initiatives for clean, safe streets, and bold plans to drive economic growth in Croydon – maximising our borough’s potential.”
Jason Perry, Executive Mayor of Croydon
The budget proposals can be viewed in full here on the council’s website. Full Council approved the budget last night, including the Executive Mayor’s amendment.
