Council tax won't rise above cap says Mayor

GOVERNMENT AGREES TO HIGHER INCREASES

- By HARRISON GALLIVEN Local democracy reporter

CROYDON’S Mayor has reaffirmed his commitment not to raise council tax above the current cap, despite councils being given the nod to request bigger rises if they are in financial trouble.

Last week the Government gave its latest official response to concerns around its Fair Funding 2.0 model, outlining how it was changing its formula to factor in housing costs before calculating levels of deprivation.

It also outlined how the five per cent cap on council tax rises without a referendum could be relaxed on a case-by-case basis for authorities in financial trouble.

But Croydon will not look to raise the local rate by more than the usual five per cent limit from next April, Mayor Jason Perry has said, despite the authority still grappling with £1.4 billion of debt, with government-appointed commissioners overseeing the turnaround efforts.

He told the Local Democracy Reporting Service (LDRS): “On council tax, my position is clear: I have no plans to go above the existing cap.

“My focus is on securing a fairer funding settlement so Croydon is not forced into difficult decisions in future.

“If the Government changes the national framework following the Fair Funding Review, we will assess the detail carefully, but my priority will always be protecting Croydon residents, stabilising the council's finances, and delivering services responsibly.”

Croydon raised council tax by 15 per cent in 2023/24 after being given special permission by the Government, but this year’s rise was back at the 5% cap.