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Angry locals are fighting back after the Government gave the green light for a three times-bankrupt London borough to raise its council tax by 15%.
On Monday, it was announced Croydon Council had received permission from Levelling Up Secretary Michael Gove for the tax hike without a referendum after ‘significant failures in local leadership’.
Outside of the capital, Thurrock and Slough councils were also granted permission to increase council tax by 10% after declaring bankruptcy, while Thurrock has also pleaded for a £636million bailout.
Yesterday, campaigners in Croydon set up an online petition demanding the reversal of the decision – which has already amassed over 3,500 signatures.
Petition organiser Steven Downes wrote: ‘We the people of Croydon reject the imposition of a 15% council tax rise. We should not be asked to pay more to get less.
On Monday, it was announced Croydon Council had received permission from Levelling Up Secretary Michael Gove for the tax hike without a referendum after ‘significant failures in local leadership’
‘Funding for Croydon Council from central government has been cut dramatically over the past 13 years, and we receive far less funding per person than neighbouring Lambeth.’
Jason Perry, the Conservative mayor of Croydon, insisted the blame lay with the ‘financial failures of the previous administration’, the BBC reports.
He said: “Given the scale of financial collapse Croydon has experienced, getting back on track will require incredibly difficult decisions.”
He added the tax increase would mean “around an extra £4.50 a week, or 63p a day, for the average property.”
Last November, Croydon council was forced to issue a Section 114 notice after becoming insolvent for a third time – admitting it couldn’t balance its budget for 2023/24.
It has also been obliged to commit to £130million spending cuts in the next financial year.
Mr Downes added: ‘We note that the Conservative Council that left office in 2014 handed over around £1 billion in debt. This was increased by 50% by the Labour group which ran the council from 2014-22.
‘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.’
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Petition organiser Steven Downes wrote: ‘We the people of Croydon reject the imposition of a 15% council tax rise. We should not be asked to pay more to get less’
In Monday’s announcement, Michael Gove told the House of Commons: ‘Following significant failures in their local leadership, governance and financial management, the Government received requests from Thurrock, Croydon and Slough for the flexibility to increase their council tax by an additional amount, to provide extra funding to support their financial recovery.
‘Given the exceptional circumstances of these councils, including unprecedented financial deficits driven by poor decision making in the past and the need for ongoing government intervention to drive their improvement and recovery, the Government has decided not to oppose the requests.
‘The Government is of course conscious of the impact on local taxpayers, particularly those on low incomes, of having to foot part of the bill for their councils’ very significant failings.
‘We have been clear to each of the councils that in implementing any additional increases, they should take steps to mitigate the impact on those least able to pay.’
Last November , it was reported that almost every local authority is expected to raise council tax by 5 per cent after Jeremy Hunt scrapped restrictions in the Autumn Budget.
The Chancellor told MPs he was ending a decade-long cap on council tax increases to allow town halls to impose rises above 3 per cent without holding a referendum.
Around 95 per cent of local authorities in England are expected to take advantage of the new powers, tipping average bills over £2,000.
The 5 per cent rise would increase the average council tax paid for a Band D home by £98.30 – pushing it from £1,966 to £2,064.30.
The Treasury watchdog has estimated bills will now rise by the same proportion in each of the next five years.
By 2027-28 the annual increase will be bringing in an extra £4.8billion a year compared to the previous cap of a 3 per cent rise.
Croydon council has been contacted for comment.
Source: | This article originally belongs to Dailymail.co.uk
