The Mayor of Croydon has insisted that it is necessary to raise council tax by 15% to make Croydon a sustainable council again while blaming Labour for the increase.

“Proposing a council tax increase is the last thing that I want to do, particularly when local people are already facing cost of living pressures,” Jason Perry said about the planned tax hike that will take effect in May.

“But the reality is that the previous administration [Labour] has left the council in such financial dire straits that without the increase, we would have to make a further £20m of savings next year, on top of the £36m already put forward.”

According to Perry’s statement, the previous Conservative administration left a debt of almost £720 million when Labour took office in May 2014. The debt increased to around £1.3 billion during Labour’s eight years in power.

Perry also accused Labour of “playing monopoly” with residents’ money. He said: “They spent £30 million on the Croydon Park Hotel and £50 million on the Colonnades shopping centre. Over £250 million was wasted on Labour’s failed Brick by Brick housing company. They wasted over £70 million on a failed refurbishment of Fairfield Halls, and the roof still leaks.”

“£70 million has been unearthed surrounding the Croydon Affordable Homes company. Labour also set unrealistic income targets (for example, on income from parking) which could never be met, then failed to scrutinise those targets properly. Multiple years of accounts have been left open and unaudited.”

“Labour’s dither and decay led to the stagnation of Croydon Town Centre. Their incompetence also meant that Council tenants on Regina Road were left to live in inhuman conditions.”

The leader of the Croydon Labour group, Stuart King, told ELL that Mayor Perry should be held to account for failing to get a fair funding deal for Croydon. He said: “Mayor Perry’s job was to get a fair funding deal for Croydon from his Government. Instead, he’s brought back a 15% increase in council tax that will hit hardworking families in the middle of a Conservative cost of living crisis.”

Despite Perry’s response, more than 20000 people have signed the petition started by Steven Downes, the founder of Inside Croydon.

“We should not be asked to pay more to get less,” Downes said.

The 15% increase in council tax will mean an extra £4.50 a week for the average property. This is 10% more than most other local authorities.

Downes added: “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% hike in council tax in the middle of the worst fall in living standards on record.

“And we call on the Government to give Croydon Council the same funding level per person as neighbouring Lambeth.”

The petition, which opposes the 15% council tax rise and calls for fair funding for Croydon, will now be presented at the council’s budget meeting on March 1.