Croydon Council is encouraging all residents, staff, businesses and partners to participate in the council’s annual budget survey.
Every council is required by law to submit a balanced budget each year, that sets out where it will invest and where it plans to save money.
As London’s largest borough, Croydon Council provides hundreds of services to 390,800 residents. These range from keeping the streets clean and safe, to protecting vulnerable children and adults, preventing homelessness and more. Over half of the council’s annual budget goes towards caring for the most vulnerable residents in Croydon – older people, and children and young people.
The Executive Mayor of Croydon has made fixing the council’s finances a top priority and, through robust financial management, Croydon has saved £137m in the past three years. The council has stayed within its annual budgets for the past two years.
There are a further £30m of savings planned for this financial year, and £22m included in the budget proposals for 2025/26.
Despite this, like councils across the country and particularly in London, Croydon is facing extreme funding pressures. This is owing to spiralling demand for some essential services, such as homeless prevention and social care, together with the increased cost of living. Councils have raised these issues with the government and await their response.
Croydon also has a £1.4bn general fund debt burden, much of which is not backed by assets. This is costing the council in excess of £60m to service per year and is the council’s third largest expenditure after services for children and adults.
In the 2025/26 budget proposals, the council sets out how it is proposing to help meet these challenges, including investing in transforming to become more cost effective and efficient.
There is funding uncertainty for all councils until the government reveals its spending plans in its autumn budget. Croydon budget proposals include an assumed 4.99% council tax rise, which is what the council estimates the government referendum cap will be.
Croydon’s debt means that it will continue to need extra financial support from the government in 2025/26. The council will not be making a formal request until after the finer details of the government’s autumn budget are understood.
Jason Perry, Executive Mayor said, “When I was elected, I pledged to make fixing the council’s finances my top priority, so we can offer our residents the services and value for money they deserve.
“I have committed to being open about the council’s finances. In the past two years, through a relentless focus, we have delivered a huge amount of savings. But the scale of the challenge means that simply making savings is not the answer. We must invest in becoming more cost effective and efficient and do it in a way that puts our residents first.
“Our proposals include plans to invest in transforming our council – to provide better services, that are responsive and available when residents want to use them. There is also a strong focus on restoring pride in our place and attracting external investment into our town and district centres. Croydon is London’s largest borough, and I know residents want us back on the map for the right reasons.
“We also need a solution to Croydon’s debt as the current situation – where borrowing costs are the council’s third largest expenditure – is neither sustainable nor fair on our taxpayers. I have written to the government about the need for an urgent solution.
“Please do make time to share your views on the proposals. I want to hear what services matter most to you, your family and your community or your business. And your ideas for how we can all work together to restore pride in our borough.”
Find out about the proposals, including planned savings and investment.
The deadline to take part in the budget proposal survey is 9 December.
