Croydon Council has set out a proposed £568 million budget for 2027/28, including a draft 4.99% council-tax increase, as it seeks to reduce costs and address continuing financial pressures. The plan is not yet approved: Cabinet is due to consider it on 14 October, with public engagement scheduled to begin five days later.
The proposed increase comprises a 2.99% rise in the council-tax element for Croydon services and a 2% adult social care precept, giving 4.99% in total. The council says it intends to keep within the limit it expects the Government to set for London boroughs. The figure remains a proposal, rather than a confirmed bill for households.
A draft plan for essential services
The £568m budget is described as supporting services for approximately 410,000 residents. These include adult and children’s social care, temporary accommodation for people at risk of homelessness, and support for children and young people with special educational needs and disabilities. The council says rising demand and inflation are adding pressure in these areas.
Its financial strategy combines efforts to reduce expenditure and improve efficiency with measures intended to generate income. It also puts emphasis on prevention and early intervention, with the stated aim of helping residents earlier and improving outcomes. The proposals sit alongside a Mayor’s Delivery Plan setting out priorities for the coming years.
Some of the measures have estimated financial effects. The council says using LED street lighting is expected to save £1.9m each year while reducing energy consumption. It also proposes accepting trade waste at Household Reuse and Recycling Centres as a way to bring in income, alongside extending opening hours. These are elements of a wider plan; the announcement does not present them as a complete solution to the authority’s financial challenges.
Borrowing remains a significant pressure
Croydon says it has relied on Exceptional Financial Support from central government since 2020 while dealing with the effects of historic financial and governance failures. The council puts the current annual repayment cost at around £95m and says this support is not a long-term solution.
The draft forecasts borrowing falling from £120.7m in 2027/28 to £76.3m by 2030/31. That is a forecast in the financial strategy, not a result already achieved. The council says it is working to reduce borrowing and improve efficiency, while continuing to identify savings and appropriate opportunities to increase income.
The proposed tax rise and borrowing figures relate to different parts of the financial picture: one sets out a possible change in the council-tax rate, while the other describes a projected borrowing path over several years. Neither should be treated as a final outcome before the budget process has concluded.
Cabinet discussion and public engagement ahead
The Medium-Term Financial Strategy and draft budget proposals are scheduled for Cabinet discussion at the Town Hall on Wednesday 14 October. Public engagement is due to open on 19 October, giving residents, businesses and community groups an opportunity to comment before recommendations are developed further.
The council says feedback and ongoing financial planning will inform the proposals brought forward for the final budget in February. Until then, both the proposed council-tax increase and the measures in the draft remain subject to the decision-making process. Cabinet’s consideration will be an important stage, but it will not itself make the draft figures a final budget.
For residents, the immediate point is that the 4.99% figure is a proposed increase for 2027/28, not a settled charge. The council’s stated timetable leaves time for public engagement and further work before final decisions are made. The consultation period will allow people and organisations across the borough to respond to the options while the authority continues to balance service needs with its financial recovery plans.
