Croydon Council is set to meet its 2025-26 savings target and plans to reduce its request for exceptional financial support from the Government by £34m next year.

Now on track to deliver more than £48m savings this year, the Council has pledged to go further and faster in its drive to modernise – saving money and improving outcomes for residents.

Published this week, the Council’s budget proposals for next year and future years include savings of £34m in 2026-27 and £30m savings every year until 2029. These are backed by a pledge to make extra savings where possible – provided it is safe to do so.

And in line with Executive Mayor Jason Perry’s promise to residents, Croydon is not proposing to raise Council Tax above the 4.99% Government cap for London boroughs.

Since 2020-21, Croydon has made £229m savings – whilst significantly improving how the Council is run. External partners from the Council’s external auditors to Ofsted, the Care Quality Commission and the Regulator for Social Housing have reported on the positive changes at Croydon.

Croydon’s financial position is improved by the Government’s Fair Funding Review, which means the Council will receive an extra £59.6m from the Government over the next three years.

Despite this, the Council’s financial challenges remain significant, owing to rising demand for services and increased costs, on top of its historic £1.4bn debt burden.

Whilst Croydon has reduced its original prediction of £153m, the Council will still need £119m exceptional financial support from the Government next year. That is not a grant but a permission to borrow more money.

Although the Council stabilised its general fund debt over recent years, the cost of its debt continues to rise and will cost the Council £86m this year. This is because the Government provides exceptional financial support in the form of capitalisation directions – which is essentially more borrowing as detailed above.

In its budget plans, the Council acknowledges that it can and must do more to tackle its financial challenges and improve its budget position.

Of the £34m savings the Council plans to make next year, £19m will come from the Future Croydon transformation programme which is fundamentally changing the way the Council works.

This ranges from using technology to improve customer experience, to becoming a smaller organisation, prioritising prevention and working more closely with partners to deliver services in the most cost-effective way.

“Since I became Mayor we have made huge strides in improving the way our Council is run. In the past few years, we have delivered £229m savings alongside better services, whilst investing in the things that matter to residents.

“That is clean, safe streets with my zero-tolerance approach to crime; restoring pride in our high streets, parks and public spaces; helping children and families to thrive, and supporting our older residents to live longer, healthier, independent lives.

“As Mayor I have continuously campaigned for fairer funding for Croydon. I welcome our borough’s settlement in the Government’s Fair Funding Review as a step in the right direction.

“But despite this, the Council’s financial position remains incredibly difficult. We continue to work closely with our Government-appointed commissioners to identify sustainable solutions to our financial challenges.

“I have always said my priority is to fix our Council for residents. I have also been clear that, whilst Croydon needs Government support for historic debt, we will do all we can locally to get our finances in the best possible position. This is a budget that responds to the challenge – stepping up the pace of change to offer our residents the value for money they deserve and expect.”

Jason Perry, Executive Mayor of Croydon

Read the budget proposals and medium term financial strategy in full here:  Agenda for Cabinet on Wednesday, 11th February, 2026, 6.30 pm | Croydon Council

The budget will be discussed at Scrutiny and Overview Committee on 10 February and Cabinet on 11 February, before going to Budget Council for a decision at the end of the month.