Croydon Council will put residents first whilst making every penny count, Executive Mayor Jason Perry has pledged.

Croydon is on track to achieve an extra £27m savings this year, taking the total in 2025/26 to £48m. This will reduce the amount of financial support the Council will need from the government.

But with Croydon still amongst the most financially challenged in the country, the Council plans more savings – whilst protecting essential services and without raising Council Tax above the cap.

“When I became Mayor I inherited an incredibly challenging financial position. I have always been clear that my top priority is to repair this damage and get our Council back on track for the people of Croydon.

“I have been equally clear that this does not mean slashing services and hiking Council Tax. Under my leadership we have made major improvements to the way the Council operates. I am determined to build on this and make savings in a way that is responsible and sustainable.

“Our budget plans set out how we are changing our Council, modernising and digitalising services, focusing on prevention and working even more closely with our partners to deliver services differently. We will be continuing this drive whilst looking at other ways to bring costs down and make every penny count for our residents.

“Croydon’s historic debt remains unsustainable, with the repayments topping £70m this year. I am working with our Commissioners and the Government to discuss a package of support which will ensure our Council’s future.”

Executive Mayor of Croydon, Jason Perry

The Council’s medium term financial strategy (MTFS) sets out its financial position and outline plans for funding, growth and savings.

Croydon’s budget gap is impacted by the Council’s £1.4bn historic debt, which will cost £71m to service next year. This is combined with the cost of extra demand for essential services which is impacting the Local Government sector. In line with the Executive Mayor’s pledge not to increase Council Tax above the referendum cap set by the Government, the plans are based on an increase of 4.99% for all years. This is the referendum limit for London boroughs for 2026-27.

Savings targets for future years include £35.9m next year, with £30m a year for the next three years after that.

The extra financial support – known as exceptional financial support (EFS) – from the Government comes in the form of capitalisation directions, which is more borrowing. For the past four years the Council has sold land and buildings to fund the cost of this borrowing.

Alongside stabilising the debt, the Council must go further locally. Work will continue to strengthen controls, improve how the Council operates, and tighten internal systems to ensure every pound is used wisely for the people of Croydon.

The Council’s transformation plan aims to reduce the levels of exceptional financial support required over the coming years.

Croydon’s plans include the estimated extra funding from the Government as part of the Fair Funding Reforms. The Council awaits the Chancellor’s budget announcement on 26 November 2025 and the provisional Local Government Finance Settlement in December to confirm details.

Croydon Council will be doing more work on its plans for the final budget report, which goes to cabinet and Council for decision in February.

Read the MTFS Cabinet report here

If residents, local businesses, partners, staff or councillors wish to comment on the MTFS report, they can email submissions to communications@croydon.gov.uk.