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Croydon rules out an above-cap rise and plans 4.99% council tax increase for 2027

The mayor will not seek permission to go higher, but over 19,000 residents could pay more if council tax support is capped at 50%.

Croydon rules out an above-cap rise and plans 4.99% council tax increase for 2027
Photo: MyLondon

Key facts

  • Croydon plans the standard 4.99% council tax rise from March 2027
  • The increase is expected to raise an extra £15.9 million in 2027/28
  • Working-age council tax support would be capped at 50% under the proposals
  • The consultation on the support changes closes at 11.59pm on 10 November 2026

Croydon Council will put council tax up by the standard 4.99% from March 2027. Mayor Jason Perry said on Wednesday 7 October that he would not ask the government for permission to go any higher.

The council’s budget papers put the extra income from the rise at £15.9 million in 2027/28. Yearly council tax income would climb to £304.9 million, from £288.9 million. Of the 4.99%, 2.99% is a general increase and 2% is a levy reserved for adult social care.

Explaining the decision, the mayor said a rise above the cap “would place an unfair additional burden on residents”.

Croydon council tax over the next four years

The council’s four-year financial plan is built on the largest permitted increase in every year. If councillors approve the budget in February, yearly council tax income is forecast to reach £358.2 million by 2030/31.

In 2023 the council raised bills by 15%, leaving Croydon with the second-highest council tax in London. It said at the time that the increase was needed to tackle long-running financial problems caused by historic mismanagement.

The plan also includes £83.7 million of savings over the four years. Gross spending on agency staff would fall by 20%. Firms that win council work in future would no longer have to pay their staff the London Living Wage. According to the council, the savings will come from non-statutory services, with housing, social care and education given priority.

Council tax support changes: consultation closes 10 November

The council has also opened a consultation on cutting back its council tax support scheme. If the changes go ahead, bills could rise for over 19,000 residents on low incomes or with disabilities. Some would lose their discount entirely, while others would receive less.

Under the proposals, no working-age claimant could get more than 50% support. At present, disabled claimants who are not working can get up to 100%, single parents with children under five get 80% and other working-age claimants get 75%. Pension-age recipients would be unaffected. The council expects to collect an extra £2.9 million to £9.5 million a year in council tax as a result.

The statutory consultation lasts six weeks and opened on 28 September. Responses can be submitted online until 11.59pm on Tuesday 10 November 2026.

Key questions

How much will Croydon council tax go up in 2027?

The council plans the standard 4.99% rise from March 2027, made up of a 2.99% general increase and 2% for adult social care.

Who could be affected by the council tax support changes?

Over 19,000 residents on low incomes or with disabilities could see their bills rise. Pension-age recipients would not be affected.

When does the Croydon council tax support consultation close?

Responses can be submitted online until 11.59pm on Tuesday 10 November 2026.