Croydon councillors vote against 15% council tax rise

Councillors in Croydon have rejected a 15% increase in council tax which would have seen bills rise substantially.

Last month the struggling authority was given special permission by the government to make the increase without holding a referendum.

Labour, Green and Liberal Democrat councillors all voted down the plan and called for the Conservative mayor to come back with new proposals.

Another full council meeting to set the budget will take place on 8 March.

The 15% rise would have meant the average household in Croydon would pay an extra £235 a year, taking bills to over £2,000.

There were 37 votes against the proposed budget, with 34 councillors backing it.

It comes following news that the council had effectively gone bankrupt after "significant failures" with its financial management.

In November 2022, the council admitted it could not balance its budget for 2023/24 and was forced to issue another section 114 notice.

It sought permission from the government to impose the rise without a referendum after effectively declaring itself bankrupt for the third time since November 2020.

Mayor Jason Perry has blamed the failings on the previous administration.

The council, where no party has overall control, estimated it would need to reduce spending by £130m in the next financial year to balance the budget, a legal requirement for local authorities.

The council tax plans will be reconsidered by the council's executive which has a legal responsibility to set a balanced budget by 11 March.

Additional reporting by Tara O'Connor, Local Democracy Reporting Service.

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