Croydon councillors vote against raising council tax by 15 per cent

By Tara O’Connor, Local Democracy Reporter

Councillors in Croydon have voted against plans to raise council tax by a staggering 15 per cent.

Opposition councillors on the no overall control council all voted against the budget, put forward last night.

The council’s two Green Party members and one Liberal Democrat joined Labour in voting no, meaning there were 37 votes in opposition to 34 for.

The budget will now come in front of another full council meeting scheduled for next Wednesday for councillors to consider the proposals again.

Croydon council has a legal responsibility to set a balanced budget by March 11.

In February, the council was given permission by central government to raise council tax by 15%, without the usual requirement of going to a referendum.

Leader of the Labour opposition, Councillor Stuart King, asked Croydon Mayor Jason Perry to look at the alternatives to the huge tax increase.

He said: “We believe an alternative legal and balanced budget is possible and could be presented to council again on March 8.”

Croydon council needs government support to get back on track after issuing its third bankruptcy notice.

A letter from the Government’s Department for Levelling Up Housing and Communities, dated March 1, outlines the support it is “minded” to give Croydon council.

This includes £224million worth of bailout loans, known as capitalisation directions, the first, of £63m, would be issued in 2023/ 24.

The council has also asked the government to write off £540m of its debts.

Mayor Perry said the council was still in discussions about the debt write off which, if it is granted, would be the first of its kind.

The proposed tax hike saw dozens of angry residents gather outside Croydon Town Hall in protest before the meeting holding signs reading “no to 15per cent”.

Pictured top: Croydon council met to vote on its budget last night (Picture: Tara O’Connor)