Perry Claims Croydon Finances Stabilised Amid Crisis 2026

Key Points

• Croydon Mayor Jason Perry claimed at the council’s budget meeting that he has “stabilised the finances of this council” and put them “back on a stable footing.”
• Perry stated that “our requests for Exceptional Financial Support are going down,” despite the council receiving £119 million in EFS for the current year, up from £110 million last year, £38 million in 2024-2025, and £50 million in 2023-2024.
• Council debt remains at the same level as in 2022, failing Perry’s 2021 promise to reduce it below £1 billion.
• Council Tax has risen by 33% under Perry, the largest increase in London, amid service cuts, library closures, and the axing of primary school lollipop crossing patrols.
• Green Party Councillor Ria Patel highlighted that Perry promised to reduce debt, not just stabilise it, with “all pain, no gain” from cuts and tax hikes.
• Liberal Democrat Councillor Claire Bonham noted that EFS, funded by asset sales, has “become normalised” in Perry’s Croydon.
• Labour’s mayoral candidate Rowenna Davis questioned why government Commissioners were sent in last July if finances are stable, calling the 33% tax rise the highest in London.
• Croydon receives the second-largest EFS settlement in England for 2026-2027 due to financial mismanagement concerns.
• Finance cabinet member Jason Cummings described government funding as “fairer now” post-Labour review, with Croydon getting an extra £61.8 million over three years (14.8% increase).
• Broader pressures include rising homelessness, adult and children’s social care demands, and soaring SEND costs affecting councils nationwide.
• Upcoming government measures: Renters’ Rights Act and £4 billion SEND reform package, including debt write-offs, despite opposition from Conservatives and Reform.

Croydon (South London News) February 26, 2026 – Mayor Jason Perry insisted last night that he has stabilised the council’s finances despite ongoing debt crises, escalating Exceptional Financial Support requests, and a 33% Council Tax hike, as opposition councillors challenged his claims during a marathon three-hour budget meeting at the Town Hall.

The meeting, marked by what TV and radio politics pundit Andrew Fisher described as “three hours of false claims and spin,” saw Perry, earning £87,000 annually, defend his record amid accusations of delusion and failure. As reported by Andrew Fisher of Inside Croydon, Perry claimed,

“I have stabilised the finances of this council,”

adding that they are

“back on a stable footing.”

What Did Mayor Perry Claim About Financial Stability?

Perry’s assertions came under immediate scrutiny. He resisted echoing Theresa May’s “strong and stable” slogan but faced pushback as his claims grew less credible. As detailed by Andrew Fisher of Inside Croydon, Perry even asserted that

“our requests for Exceptional Financial Support are going down.”

This statement followed Tuesday’s announcement of £119 million in EFS for Croydon, a rise from £110 million the previous year, £38 million in 2024-2025, and £50 million in 2023-2024. The increase underscores deteriorating finances rather than improvement.

Council debt stands exactly where it was in 2022, despite four years of Perry’s leadership, cuts, closures, and tax rises. In 2021, Perry promised not merely stabilisation but reduction below £1 billion—a target unmet.

Why Has Council Tax Increased So Sharply in Croydon?

Residents have borne a 33% Council Tax increase under Perry, the steepest in London. Services have suffered: libraries closed, primary schools’ lollipop crossing patrols eliminated.

As reported by Andrew Fisher of Inside Croydon, Labour’s mayoral candidate Rowenna Davis stated that this was the largest rise in London and questioned the need for government Commissioners if finances were truly “back on track.” The Commissioners arrived last July over financial mismanagement fears, reflected in Croydon’s second-largest EFS for 2026-2027 nationwide.

Liberal Democrat Councillor Claire Bonham emphasised that EFS—funded by asset sales—has “become normalised” under Perry, far from exceptional.

What Do Opposition Councillors Say About Perry’s Record?

Green Party Councillor Ria Patel directly confronted Perry, noting his 2021 pledge was to cut debt below £1 billion, not stabilise it. As covered by Andrew Fisher of Inside Croydon, Patel observed “all pain, no gain” from the austerity measures imposed.

Rowenna Davis, Labour’s candidate, highlighted the tax burden and Commissioner intervention as evidence of failure. Claire Bonham reinforced that reliance on EFS sales signals systemic issues.

These critiques painted a picture of a council in perpetual crisis, with Perry’s leadership yielding little progress.

How Is Government Funding Changing for Croydon?

Tory finance cabinet member Jason Cummings called post-Labour fair funding review allocations “funding fairer now than it was before.” Croydon gains £61.8 million extra over three years—a 14.8% uplift.

Yet this comes as EFS needs double 2022 levels, exposing underlying weaknesses after four years of Perry’s tenure. Mayor Perry acknowledged the grant boost but framed it against national trends.

What National Pressures Are Impacting Croydon Council?

Perry and Cummings identified universal challenges: surging homelessness, heightened adult social care and children’s services demands, and skyrocketing Special Educational Needs and Disabilities (SEND) costs.

These “steepling” expenses strain every English council, complicating local efforts. Cummings noted fairer funding helps, but Perry’s stabilisation claims rang hollow amid rising EFS.

What Government Reforms Are on the Horizon?

Government action targets some pressures. The Renters’ Rights Act nears implementation, despite Conservative and Reform opposition, aiming to curb homelessness drivers.

SEND reforms include a £4 billion investment package, with councils’ SEND debts to be written off. Perry and Cummings referenced these tentatively as relief, though full effects remain pending.

As reported extensively by Andrew Fisher of Inside Croydon, the budget meeting exposed deep divisions. Perry, dubbed a “lame duck” Mayor, portrayed a council stabilised, yet data tells otherwise: debt static, EFS ballooning, taxes soaring, services slashed.

Fisher, who endured the full session, captured Perry’s defiance: claims of progress clashing with reality. Patel’s reminder of unfulfilled promises, Bonham’s normalisation critique, and Davis’s pointed queries amplified opposition voices.

Croydon’s plight mirrors broader local government woes but stands out for scale. Second-highest EFS signals acute mismanagement, per government intervention. The £119 million lifeline—asset-stripped—funds operations but erodes future assets.

Taxpayers face 33% hikes since Perry’s 2021 entry, funding cuts elsewhere. Libraries shuttered, lollipop patrols gone—children’s safety compromised. Davis’s London-high claim underscores resident pain.

Commissioners’ July arrival formalised central oversight, triggered by repeated failures. Perry’s “stable footing” jars with this reality.

Funding gains offer breathing room: £61.8 million extra, welcome amid fair funding shifts. Yet EFS doubling since 2022 indicts prior stewardship.

National headwinds persist. Homelessness surges strain housing. Social care demands escalate with ageing populations and complex needs. Children’s services buckle under caseloads. SEND costs “steeple,” bankrupting provisions.

Government counters with Renters’ Rights—reining landlord practices—and £4 billion SEND overhaul, debt forgiveness inclusive. Conservatives and Reform resisted, but Labour presses ahead.

Inside Croydon’s coverage, via Fisher, meticulously documented the spin. Perry’s £87,000 salary contrasts sacked predecessors’ fates, yet his job persists amid crisis.

Opposition unity—Green, Lib Dem, Labour—challenged delusion. Patel: debt pledge broken. Bonham: EFS routine. Davis: taxes, Commissioners indict.

Cummings’ fairness nod acknowledges Labour changes, but Perry’s four-year fix falls short. Debt lingers above £1 billion; stability illusory.

Residents grapple realities: higher bills, fewer services. Budget passes, but questions linger on Perry’s legacy as elections loom.

Croydon’s saga warns of local governance fragility. Perpetual crisis demands scrutiny, accountability. Perry stabilised? Data disputes.