Average Croydon household will pay £235 extra a year in council tax

The average Croydon household will pay £235 extra a year bringing bills over £2,000.

The council has been given permission by central government to hike council tax by a huge 15 per cent.

It will mean those living in Band D properties will see their annual bill rise to more than £2,000 when the Greater London Authority (GLA) precept is added.

It comes 10 weeks on from the authority issuing its third bankruptcy notice in two years.

In November 2022 it issued a Section 114 notice admitting it could not balance its budget for 2023/24.

Usually, council tax increases are limited to 5per cent and it cannot rise above this without a referendum – this is split between 3pc for general spending and two per cent for adult social care.

The government announcement has given Croydon Council permission to increase the level by 10 per cent, blaming “significant failures” in financial management.

It also allowed Thurrock and Slough councils to hike council tax by 10 per cent.

This year council tax for a band D property in Croydon cost £1,570.07.

The 15 per cent increase will bring it up by £235.50 to £1,805.50.

The GLA precept for a Band D property will rise by £38.55 to £424.14.

This means the total bill for an average property will rise from  £1965.66 to £2239.

Leader of the Labour opposition, Councillor Stuart King, said: “The answer to Croydon’s financial problems isn’t imposing a massive hike in council tax on residents in the middle of a Conservative cost of living crisis.

"Mayor Perry seems to want to punish hardworking residents rather than get a fair deal from his Government.”

But one resident, Chris Winton, hit back on Twitter saying he was fed up with local politicians blaming each other for the mess in Croydon.

He said: “Thoroughly hacked off with politicians of all stripes associated with Croydon blaming each other, a pox on all your houses.

"It doesn’t matter anymore who’s at fault, can you find some common ground to move things forward?”

Croydon’s Conservative mayor, Jason Perry, blamed the financial position of the council on the previous Labour administration.

He said: “Given the scale of this toxic legacy, getting back on track will require incredibly difficult decisions.

"That is why, as part of a wider package of support we are negotiating, the government has given us permission to propose a one-off increase in council tax of 15 per cent this year.”

The council is still in discussion with the government on how else it will help Croydon get back on track financially.

The council hopes this could include writing off some of its £1.5 billion of debt and a bailout loan known as a capitalisation direction.

The council’s only Liberal Democrat councillor Claire Bonham said: “Very concerned to hear about what would be the biggest council tax rise in the country.

"Croydon residents shouldn’t pay the price for the mistakes of others.

"Mayor Perry should try to get a better deal from his government, not punish our residents.”

On Facebook, locals reacted in disbelief to the proposed increase with calls for top wages at the council to be cut instead of hitting residents with the rise.

And there were dozens of angry responses to Mayor Perry’s statement on Twitter.

Adam Farrell said: “Great, so just adding to the constant increase in living costs, thanks to the failing Tory government.

"Croydon has some decent things going for it but years of neglect and this increase in council tax are really making me think about moving.”

While Cam Witten said: “If this is a flat increase across all council tax bands, it is by definition regressive and will hurt the poorest the most.

"Good to offer council tax support, but this should be tiered by income.”

Another Tweeter named Dancer said the huge increase would push them to leave the borough.

They said: “All my life in Croydon now I believe its time to move. 15 per cent is not right for the poor service we all get. Croydon is finished….”

The council is due to set its budget for 2023/24 early next month with meetings scheduled for March 1 and March 8.

It needs to hear back about its government settlement in order to set a balanced budget, which is a legal requirement.