Campaigning councillors will be lobbying Whitehall to try and disarm the “ticking time bomb” of Croydon’s increasing funding problems.

Faced with having to make £100m in savings by 2018 following Government cuts, Croydon Council has launched a Fair Share for Croydon campaign.

Councillors believe Croydon receives disproportionately less funding than other authorities with similar characteristics facing the same issues, such as those in inner London.

An increase in people moving from inner London to the borough because of the rise in housing costs and the welfare reforms has added to pressures on the borough’s health, education and social services and so council leader Councillor Tony Newman is asking central Government for more money.

He also wants devolved powers including being able to set levels of council tax and business rates, the ability to increase borrowing to build more affordable homes and controlling the proportion of fuel duty to repair local roads.

Due to the formula used by government to allocate funding to local authorities Croydon’s share of grants fell by £10.6m in the last financial year.

And as the current system is fixed until 2020-21, Croydon is set to lose a further £47m.

Coun Newman said: “It’s high time Whitehall woke up to the ticking time bomb facing local authorities and the massive funding shortfall that will only widen inequalities and deepen deprivation in boroughs such as Croydon.

“We have to make £100m of savings in the next three years, which will have a huge impact on the services the council provides.

“Unless central Government grants us the powers and the funding we need, then we face a very uncertain future where the level and quality of service the council provides is seriously undermined.

“We are the ones on the ground who know best the problems we are facing and how we can tackle them.

“Therefore we urge ministers to listen to us and act now before it is too late.”