Croydon Council is forecasting a significant budget underspend of £26.2 million for the 2025-26 financial year, an improvement of £0.5 million since the previous period's report. This positive financial outlook contrasts sharply with many other London boroughs, which are anticipating budget overspends.
The Period 9 financial performance report, presented to the Cabinet on Wednesday, 25 March 2026, highlighted continued strong financial control and close management of budgets across the council. This disciplined approach has allowed Croydon to avoid the pressures in key demand-led areas, including temporary accommodation and children's services, that are affecting other boroughs. These pressures, combined with inflationary challenges, increased demand for services, and the ongoing impact of historic debt, are cited as primary reasons for overspends elsewhere in London.
In addition to the General Fund revenue forecast, the report also confirmed a projected underspend of £3.1 million in the General Fund capital programme. The Housing Revenue Account (HRA) is forecast to break even on its revenue budget for the financial year, with a projected underspend of £3.8 million in its capital programme.
Councillor Jocelyn Cummings, Cabinet Member for Finance, attributed the positive financial performance to the council's continued financial control and diligent management of budgets across directorates.
She noted that many other London boroughs are forecasting overspends, underscoring Croydon's strengthened financial position.
Executive Mayor Jason Perry concluded the discussion by emphasizing the Council's strengthened financial controls and disciplined approach.
He stated that the foundations are in place. The council is back on track, with a clear direction for the work that must continue, with lots done and lots more to do.
In terms of financial recovery and future operational capacity, 'back on track' signifies that the council is now operating with stronger control, clearer oversight and a more disciplined approach to finances.
The Period 9 financial performance report can be found here.