Croydon Council has been given special permission by the government to raise council tax by a record 15 per cent
Croydon residents have launched a petition against the borough’s plans to raise council tax by a record 15 per cent from August.
Under current rules, town halls can only increase council tax by 4.99 per cent without a referendum, including a 2 per cent levy to pay for adult social care.
But bankrupt Croydon Council was on Tuesday given special permission by the government to increase the charge by a “staggering” 15 per cent - two times more than most other local authorities.
A petition launched by resident Steven Downes, calling on the authority to scrap the hike “in the middle of the worst fall in living standards on record”, had garnered more than 4,000 signatures as of Wednesday lunchtime.
It reads: “We the people of Croydon reject the imposition of a 15 per cent council tax rise. We should not be asked to pay more to get less.
“Funding for Croydon Council from central government has been cut dramatically over the past 13 years.”
Croydon Council was left £1.6 billion in debt when Labour lost power last May, while in November it issued its third bankruptcy notice in just two years.
The petition adds: “Successive councils and successive governments are to blame for the current financial situation in Croydon Council. The one group that is not to blame is Croydon’s residents.
“We call on the Croydon Mayor to withdraw plans for a 15 per cent hike in Council Tax in the middle of the worst fall in living standards on record.”
The council tax increase will see the average Croydon household pay out about £235 more per year, and comes on top of the almost £40 hike by Mayor of London Sadiq Khan for City Hall’s share of the bill.
It means Band D homes will pay over £2,230 a year for their total council tax bill.
Signing the petition, Cadhene Lubin-Hewitt wrote: “It’s ridiculous and not fair to the residents of Croydon as there is no pay rise to match.”
“With the cost of living so high, it’s just not affordable,” said Laura Stracey.
Zlata Yurukova added: “I earn an average income and it will make it impossible for me to live in Croydon.”
Croydon’s Conservative mayor Jason Perry said on Tuesday the government had given his borough special permission to raise extra funds “to get the council back on a sustainable footing”.
Croydon was among three authorities given permission to increase council tax by 10 per cent as part of the final local government finance settlement, joining Thurrock and Slough concils.
Mr Perry blamed the previous Labour administration for the rise.
“I know this is going to be difficult for people in Croydon,” Mr Perry said. “But without the proposed increase, the council would need to make a further £20m of cuts this year, putting vital services to vulnerable residents at risk.”
Responding to the petition, Mr Perry said: “I know local people are understandably concerned about the impact the proposed increase in council tax may have. This is not a proposal we have put forward lightly but given the scale of the financial chaos left by the previous administration, we have little choice but to take this exceptional step.
“We are also proposing to significantly increase the support we provide to protect those who cannot afford to pay their council tax and would otherwise be pushed into hardship by the increase.”
Croydon North Labour MP Steve Reed is among those who have criticised the council tax increase, saying: “Croydon Conservatives are planning to wallop residents with a staggering 15 per cent council tax hike in the middle of a Tory cost-of-living crisis - instead of getting fair funding from their own Government.
“What planet are they living on? Residents simply can’t afford this.”
A Government spokesperson said: “Given the exceptional circumstance in these councils and unprecedented scale of financial deficits in each council, the government has agreed to the requests.
“In line with their requests, Thurrock and Slough will be able to raise council tax by an additional 5% above referendum principles applied to other councils, and Croydon will be able to raise an additional 10%.”
