Croydon set to hike council tax by 2.99 per cent amid cost of living crisis

By Tara O’Connor, Local Democracy Reporter

Croydon residents will be hit with a rise in council tax and rents from next month.

Council leader Councillor Hamida Ali said the price hike was “one of the most difficult decisions to make” as locals face the cost of living crisis.

The authority voted to increase council tax by 2.99 per cent at a council meeting on Monday, March 7.

The total annual cost for a Band D property will be £1,965 up from £1,888 in 2021/22.

This includes the Greater London Authority precept, which will rise by 8.8 per cent and is equivalent to almost £1.50 more a week.

The increase will come into force in April at the same time council tenants will see a 4.1 per cent rent increase.

On average, weekly rents for a two-bed home will rise from £110.88 to £115.42.

At Croydon’s budget council meeting Councillor Callton Young, cabinet member for resources and financial governance said: “The council was faced with a challenge like none before and has, under new leadership, been able to stabilise our finances while protecting the most vulnerable in our borough.”

The council agreed the new council tax rates as part of its 2022/23 budget.

It is able to balance the budget with the promise of a £25 million from loan from the government.

It is the latest installment in a four-year loan agreement made in the wake of the council’s 2020 bankruptcy.

The Conservative opposition proposed an amendment to the budget, to “bring Purley Pool back to life, return it to its status as a much loved and needed local facility, to provide again a suitable place for schoolchildren to learn how to swim and to properly respond to the needs of local residents.”

But the motion was not backed with cabinet member for culture and regeneration, Councillor Oliver Lewis, arguing the proposal was a “short term sticking plaster not a long term plan”.

He said it would be too expensive to repair the current pool, which has been closed since March 2020, and instead should be replaced with a new pool as part of a redevelopment of the site.

After the meeting, leader Cllr Ali, said: “Delivering this balanced budget shows that despite the significant funding pressures facing local authorities, Croydon is making great strides in getting its finances back on track.”