Croydon Council is set to raise its share of council tax by 3.99 per cent.

Labour leader Tony Newman said the hike was essential to stop the borough becoming “victim of the government cuts”.

The planned increase, announced today, includes a two per cent adult social care “precept”, a power given to local authorities in George Osborne’s autumn statement in a bid to plug funding gaps following government cuts, as well as a further 1.99 per cent rise.

But the net tax increase for households will be 1.89 per cent, because the Greater London Authority’s (GLA) share will fall following the reduction of a charge to pay for the 2012 Olympics.

Feb 2015: Croydon council tax has been frozen and Boris Johnson makes a £4 cut

Feb 2014: Croydon Council tax frozen with £25 rebate for rate payers

Feb 2013: Croydon Council tax increase 'is a betrayal', says Labour group leader Tony Newman

The council tax hike is the highest possible increase without a referendum.

Richard Simpson, the council’s assistant chief executive, said the council expected to raise an extra £5.4m through the hike.

Half of that sum will be ringfenced to fund adult social care.

Under the proposals, households in Band D properties – used as an average by local authorities – will pay an extra £46 a year to Croydon Council in council tax.

But after the GLA’s share reduction, the overall bill increase for Band D properties will be £27.74 a year, or 53p a week.

Labour council leader Tony Newman defended the increase as a necessary step to protecting core council services.

He said: “I think if you asked people if they wanted to pay an extra 53p a week, they would probably say no.

“But I think if the choice is to pay an extra 53p a week to protect the frontline services, protect the libraries, keep the sports halls open, I think that’s a reasonable deal under the pressure we’re under. 

“We’re not going to let Croydon become victim of the government cuts.”

Chancellor George Osborne announced in his spending review in November that Government grants to local authorities would be slashed by 56 per cent over the next five years.

Households in the the lowest valued Band A properties will pay an extra £31.16 a year to Croydon Council, with an overall bill increase of £18.49 after the GLA reduction.

Highest-value Band H properties are set to be asked for an additional £55.48 per year, with an extra £93.48 going into the coffers of Croydon Council.

Coun Newman claimed the increases were in line with most other London boroughs.

Last month, Sutton Council also announced it would be raising council tax by the maximum 3.99 per cent.

Coun Newman acknowledged that the council would have to “look at different ways to deliver those services” as cuts continued to bite.

He said: “We have to look at every service - but all the libraries are open today, and all the libraries will be funded in the budget.”

The council has offered voluntary redundancy to 85 staff members since November last year, a move expected to save the council between £2.5 to £3m a year.

Councillors will vote on the 2016-2017 budget on February 26.

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