Croydon has set a budget that builds on progress – stabilising the Council’s finances, protecting services for residents and investing in our borough to restore pride.
“I inherited a Council in serious financial distress, that had issued two Section 114 Notices – effective declarations of bankruptcy. External investigations had uncovered serious issues with financial decision-making and governance – and residents were paying the price.
“Since 2022, we have stabilised the debt and we have fixed the hole beneath the waterline. That is real progress. But Croydon’s recovery remains fragile.
“All councils continue to face significant pressures, from rising demand and increased costs, and Croydon bears a £1.4bn general fund debt burden.
“We are working hard to keep improving our Council, reduce costs and become a smaller, more efficient organisation that delivers better value for everyone in Croydon. That is my vision.
“I am working hard to restore pride in Croydon. We are investing in cleaner, safer streets – from delivering blitz cleans across the borough to stepping up enforcement in my zero tolerance approach to crime and antisocial behaviour.
“We have secured more than £1.2 billion of inward investment and are driving regeneration in our town and district centres. Change is happening and you can see it on our high streets, parks and public spaces. We are supporting children and families and helping older residents live healthier, more independent lives.
“We have made strong progress, but there is still more to do. My commitment remains clear: to fix our Council, protect local services and ensure Croydon delivers value for money for every resident. Croydon has come a long way. We are back on track. And we must keep going.”
Jason Perry, Executive Mayor of Croydon
Since 2020-21, Croydon has delivered £229 million of savings, including £48 million savings in the past financial year. The Council’s budget, approved at Full Council on Wednesday, includes a further £34 million savings in 2026/27, and £30 million savings each year through to 2029.
These savings have been achieved whilst significantly improving the Council, with partners from the Council’s external auditors to Ofsted, the Care Quality Commission and the Regulator for Social Housing, reporting on the positive changes.
In line with the Executive Mayor Jason Perry’s pledge to residents, Croydon is not increasing Council Tax above the Government’s 4.99% cap for London boroughs. This includes the 2% Adult Social Care precept that Councils are expected to charge.
For a Band D property, this represents an increase of approximately £2.30 per week, including the Greater London Authority (GLA) precept.
The Council will continue to offer help for those who are experiencing hardship, through its Council Tax Support scheme: www.croydon.gov.uk/benefits/council-tax-support
Croydon continues to face significant financial challenges, with a historic £1.4 billion debt burden in the general fund, which will cost £86 million to service this year.
The Council has reduced its need for exceptional financial support, down from £153m to £119m. One in every four London boroughs now relies on this mechanism, reflecting pressures on the local government finance system. Nationally, 37 councils now rely on this.
In its budget, the Council pledges to go further and faster to reduce costs and improve its budget position.
Some of the savings will be achieved by the Council making changes to how it operates, modernising and delivering services in more efficient ways.
This includes using technology to make it quicker and easier for residents to contact the council and get help when they need it.
It means taking a preventative approach, helping communities with challenges before they become crises.
And it means working more closely with partners, such as voluntary, communities and faith and groups, to deliver services in the most cost-effective way.
These changes will mean the Council becomes a smaller organisation, which costs less to run – and delivers value for every penny it spends.
