A DOUBLE financial handout for residents is being offered by Croydon's Tory run council as the main parties gear up for May's elections.
But council leader, Mike Fisher, has been quick to claim the effective reduction in council tax bills and a freeze on council tenants' rents is down to good financial management rather than a pre-election bribe.
The proposals announced on Tuesday mean residents paying council tax will receive a one-off £25 reduction in their bills.
On top of this the council is planning to freeze the Croydon element of the council tax.
These two measures, combined with the Mayor of London's announcement he is planning to reduce the Greater London Authority precept by 1.32 per cent, means that bills for average taxpayers in the borough will reduce overall by about £30 or two per cent.
For those of the council's 14,000 tenants who do not have their bills paid through housing benefit, there will be a two week rent holiday in April saving around £220 for those on average rents.
This will, however, be cancelled out by a Government enforced rise in rents of 4.9 per cent leaving tenants, according to cabinet member for housing, Councillor Dudley Mead, with a freeze in their bills.
Cllr Mead said the freeze was possible because of a record 98.6 per cent rate of rent collections and savings of £6 million on the way a proportion of rents is paid to the Government.
Cllr Mead said: "I would like to see this continue in future years."
Commenting on the council tax announcement , Cllr Fisher said the one-off payment was being financed largely from sound overall financial management and the £3 million surplus in a recession reserve fund set up by the council to act as insurance against the effects of the financial downturn.
He said: "Now we are coming out of the recession we know we can afford a rebate. The money will benefit people in lower band properties who are the ones who are most likely to have been feeling the squeeze."
Cllr Fisher claimed the reduction was running alongside efficiency savings of around £18 million and a programme of planned investment which includes £90 million on primary and secondary school expansions; £24 million on highways improvements; £17 million on the regeneration of New Addington; £6 million on social housing and £26 million on refurbishing the Fairfield Halls.
He admitted expecting to come under fire from Labour opposition leader, Tony Newman, who would accuse the council of offering pre-election bribes.
Cllr Fisher said: "This had nothing to do with the election.
"I am not interested in what Cllr Newman has to say, I am interested in what the people of Croydon have to say.
"I don't think you will find many residents saying they don't want money back. They wouldn't be happy if we did not hand back money to them we don't now really need."
Both the council tax proposals and the rent freeze will be considered by the council's cabinet on February 10 with the council going for final ratification by the full council two weeks later.
