Plans to increase council tax in Croydon by 15% have been approved by the government.
Under current rules, town halls can only increase council tax by 4.99 per cent without a referendum, including a 2 per cent levy to pay for adult social care. But Croydon Council was on Tuesday (7 Feb) given special permission by the government to increase the charge by a “staggering” 15 per cent – two times more than most other local authorities.
The council tax increase will see the average Croydon household pay out about £235 more per year. It means Band D homes will pay over £2,230 a year for their total council tax bill.
Croydon Council sought permission to impose the rise without a referendum after declaring itself bankrupt for the second time in three years in November.
Last November, Croydon council was forced to issue a Section 114 notice after becoming insolvent for a third time – admitting it couldn’t balance its budget for 2023/24. It has also been obliged to commit to £130million spending cuts in the next financial year.
Funding for Croydon Council from central government has been cut dramatically over the past 13 years, and Croydon receives far less funding per person than neighbouring Lambeth.
Council tax is due to rise for all Londoners as of 1 April when the Mayor of London will add £38.55 on yearly council tax bills,
It means the typical household will pay just over £434 to the Greater London Authority, mainly for transport, policing and the fire brigade, as well as the running of City Hall.
A petition created by Steven Downes, Editor of Inside Croydon, will call on the Croydon Mayor to withdraw plans for a 15% hike in Council Tax in the middle of the worst fall in living standards on record.