Council tax in Croydon has been frozen for the next financial year, it was agreed tonight.

At a meeting of the full council at the Town Hall, 38 councillors voted for the Labour budget and 29 voted against, with no abstentions.

The vote means council tax on a Band D property will stay as it is this year at £1,171.39.

Speaking before the vote, council leader Councillor Tony Newman said: "I'm proud to be the leader of the council as we announce a freeze in the council tax.

"A year ago Councillor Fisher suggested we were in never never land.

"We are firmly in the real world tonight, a world where the people voted for a Labour council.”

He told the meeting that the budget protects key services, despite the expected reduction in government funding over the next four years.

This funding reduction means that the council has to make about £100m in savings by 2018.

Coun Newman added: “No one is saying that it’s 100 per cent perfect but every budget proposal in here is for the benefit of the people of Croydon, not for the politicians of Croydon.

“Our administration and our town are making very real progress but in the years to come challenges will remain and there is much work to do.”

In response the leader of the opposition, Coun Tim Pollard, said that despite the freeze people would find themselves paying more than under the previous administration.

This is because the Conservatives gave households a £25 rebate on their council tax in the last financial year.

And, in reference to recent decisions including Labour deciding to keep Purley Pool open for the time being, he added: “I have no confidence that this administration can deliver its budget.

“The last few months has shown it flip-flopping backwards and forwards.

“This administration is incapable of making tough decisions.”

And while Croydon Council kept its council tax the same, Boris Johnson has lowered the amount he will take in the mayoral precept, which funds services including the Metropolitan Police, London Fire Brigade and Transport for London.

For a band D property it is set to be reduced from £299 a year to £295.