George Osborne announced £7m funding for a Croydon "growth zone" in today's budget.

The Chancellor pledged the money in his final budget speech of the Parliamentary cycle this afternoon, following lobbying from Croydon Council and the borough's MPs.

He said the cash injection, which will initially go to the Greater London Authority, will help create at least 4,000 homes and 10,000 jobs in Croydon.

In a statement following his speech, Mr Osborne said: "London is the global capital of the world, and we want it to grow stronger still.

"That is why we are investing £7m in the Croydon Growth Zone, proposed and championed by Gavin Barwell.

"This will support delivery of over 4,000 homes and 10,000 jobs, securing Croydon’s position as an economic hub in Greater London."

Croydon Council said it "cautiously welcomed" the announcement, but described the investment as "only a start".

The council wants devolved tax powers to raise £5.25bn it says could fund 23,500 new jobs and 8,000 homes in the town centre by 2031.

Council leader Tony Newman said: "This is good news for Croydon and its residents, who will be the main beneficiaries of growth in our borough; however it is only a start towards ensuring Croydon has the much needed infrastructure improvements.

“We want to make sure that we are providing the right kind of growth that will improve the quality of life for local people. 

“Tackling the shortage of housing is the council’s biggest priority and this announcement will help drive forward our plans to build thousands of new homes in Croydon while also creating thousands of new jobs."

Gavin Barwell, MP for Croydon Central, said: "I'm delighted with the Government and GLA's continued support for Croydon's Growth Zone.

"Today's news will enable Croydon Council to fund the infrastructure we need to transform town centre."