Croydon Council has unveiled plans for an £874 million capital investment over the next six years, as detailed in its General Fund Capital Programme for 2025-31. The ambitious strategy, presented to the Council's Cabinet on February 11, 2026, includes a projected expenditure of £682.8 million financed through borrowing.
The Capital Programme is designed to support the Council's five key outcomes: balancing its books, delivering sustainable services, fostering opportunities for business and learning, ensuring children and young people thrive, creating a cleaner and safer borough, and enabling residents to lead healthier and more independent lives.
Significant investment is earmarked for town centre regeneration and public realm improvements. The council plans to invest £40 million in key regeneration projects within the town centre as part of the Croydon growth plan. Additionally, the Pride in Place programme will fund specific public realm enhancements across the borough. These include transforming a vacant building in Addiscombe Recreation Ground into a new community space with refurbished toilets, upgrading the Edge Clean Playground in Selston, and improving lighting and pathways in Wandle Park. Further enhancements are planned for Wandle Ponds, Millers Pond in Shirley, the Sunken Garden in Queen's Gardens, and community bases in Broad Green, Sanderstead, and Shirley. New paving is also planned for Green Lane Shopping Parade in Norbury, alongside new public art on the High Street. New Addington North has secured up to £20 million through the Pride in Place initiative over the next decade. Regeneration projects around George Street, Dingwall Road, and Croydon Minster are also advancing with Growth Fund investment, as is the North End Master Plan.
The Housing Revenue Account (HRA) Capital Programme is projected to receive £572 million in investment between 2025-26 and 2030-31. This funding will be directed towards major repairs, building safety works, compliance, acquisitions, and regeneration projects. Specifically for the Regina Road estate, construction of up to 340 new homes was expected to commence in March 2026, subject to the completion of the second stage of the Greater London Authority review. This development will include at least 215 council homes, new green spaces, a nursery, improved lighting and security, a multi-games area, and enhanced walking and cycling routes.
The Council's strategy for securing external funding involves leveraging sources such as Government grants, Section 106 agreements, and Community Infrastructure Levy. The UK Shared Prosperity Fund is being used to strengthen district centres, improve high streets, and support local businesses, with specific investments in Central Parade in New Addington including outdoor gyms, greener public spaces, business support, and cultural events. The Holiday Activities and Food (HAF) Programme is also supported by confirmed Government funding totalling £4.84 million over three years.
However, the Council's substantial historic debt burden and rising demand for services continue to place significant strain on its finances. The capital programme's reliance on borrowing, particularly through capitalisation directions, is highlighted as unsustainable in the long term, necessitating ongoing dialogue with the government for a more sustainable financial solution. The strategy emphasizes prudent financial management, with a focus on essential capital works that meet statutory obligations, deliver savings, and align with the Executive Mayor's objectives. Efforts to minimise borrowing are ongoing, with priority given to external funding sources and capital receipts from asset disposals.
