Croydon councillors have voted to freeze council tax and give taxpayers a £25 rebate in a move which was dismissed as a ‘gimmick’ by the opposition.

At a full council meeting on Monday night the budget for the financial year 2014-15 was passed by 37 votes to 32.

Taxpayers who paid council tax in full this year will receive £25 in April.

Coupled with a 1.32 per cent cut in the Mayor of London's portion of council tax bills, the average Band D household is set to see their bill fall by 2 per cent.

Council leader Councillor Mike Fisher said: “Our focus has been and always will be on doing the right thing for the residents of Croydon.”

But the leader of the opposition Labour councillor Tony Newman said: “Last year the council put tax up by £26 and this year they hand back £25.

“A Labour council if elected in May will freeze council tax as well but without any gimmicks and bribes.”

Labour proposed an amendment to the budget which did not include a £25 rebate for residents as the opposition proposed to invest this money into services including extra council enforcement officers and more CCTV cameras.

This amendment was not passed at the meeting.