The Council meeting scheduled for Wednesday, 25 February 2026, was set to discuss the borough's budget for the upcoming financial year, 2026-27, and its medium-term financial strategy. A significant portion of the agenda was dedicated to financial matters, including the approval of the council's budget, the setting of Council Tax levels, and the management of treasury operations. Additionally, the meeting was scheduled to address the Housing Revenue Account (HRA) budget, business plan, and capital programme, alongside the Council's overall capital programme and strategy.

The Council's Budget 2026-27

The primary focus of the meeting was the approval of the Council's Budget for 2026-27. This included a proposed increase in the Croydon element of Council Tax by 4.99%, incorporating a 2.00% levy for adult social care. The net budget requirement for 2026-27 was proposed at £485.401 million, with a Council Tax requirement of £288.944 million. The report detailed the calculation of the Council Tax requirement, outlining projected expenditure and income, including grants and business rates.

The budget proposals were informed by a letter from the Ministry of Housing, Communities & Local Government regarding Exceptional Financial Support (EFS), indicating a potential capitalisation direction of up to £119 million for 2026-27, decreasing to £69 million by 2029-30. This support is crucial for balancing the budget, given the Council's significant historic debt burden and ongoing demand pressures in services such as adult social care, children's services, and temporary accommodation.

The agenda also included the Council's Medium-Term Financial Strategy (MTFS) for 2026-30, which outlined proposed savings of £34 million in 2026-27, rising to £30 million annually through to 2029. These savings are intended to be delivered through the Future Croydon transformation programme, aiming to modernise Council operations.

The meeting was also scheduled to consider the Scrutiny and Overview Committee's report on the budget proposals, which included recommendations for reinstating a public budget consultation process for the 2027/28 budget and strengthening support for teams working with private sector tenants. The Executive Mayor's response to these recommendations was also to be presented.

Housing Revenue Account (HRA) Budget and Business Plan

Decisions were to be made regarding the Housing Revenue Account (HRA) rent and charges for 2026-27. The proposals included a 4.8% increase in social rents, aligned with the Government's Social Housing Rent Policy, and a continuation of the HRA Hardship Fund. The HRA Business Plan for 30 years was also presented, outlining planned capital investments in the housing stock, including major repairs, building safety works, and regeneration projects like the Regina Road estate redevelopment. The plan indicated significant capital expenditure, with a substantial portion to be financed through borrowing.

Capital Programme and Strategy

The Council's Capital Programme for 2025-31 and the Capital Strategy for 2026-27 were scheduled for consideration. The General Fund Capital Programme projected expenditure of £874.1 million over six years, including capitalisation directions of £543.1 million, with £682.8 million financed through borrowing. The HRA Capital Programme projected an investment of £572 million between 2025-26 and 2030-31. The strategy emphasized prioritizing statutory compliance, asset safety, value for money, and long-term sustainability, with efforts to secure external funding where possible.

Treasury Management Strategy

The Treasury Management Strategy Statement, Minimum Revenue Provision (MRP) Policy Statement, and Annual Investment Strategy for 2026-27 were also on the agenda. These documents outline the Council's approach to managing borrowing, investments, and risks, aiming to ensure prudent handling of public money and compliance with professional codes. The strategy acknowledged the Council's significant debt burden and the ongoing need for exceptional financial support from the government.

Other Items

The agenda also included the Croydon Pay Policy Statement for 2026-27 and the Members' Scheme of Allowances for 2026/27, which were to be approved. Additionally, the meeting was to address the Dedicated Schools Grant (DSG) for schools funding in 2026-27, including the approval of local funding formula factors. Due to the timing of the Greater London Authority (GLA) precept confirmation, a special Council Tax Setting Committee was proposed to be established to agree the final Council Tax calculation.