Croydon Council has asked the Government for devolved tax powers to generate £5.25bn for the borough's economy.

A stamp duty pilot that would see Croydon pocket tax on new homes and increased income from business rates are among the money-raising ideas put forward.

The proposals, which also include the creation of a town-centre development company and an investment fund, form part of a "growth zone" strategy unveiled this week.

The council wants to capitalise what leader Tony Newman called the "once-in-a-lifetime regeneration opportunity" created by Hammerson and Westfield's £1bn overhaul of the Whitgift Centre.

Coun Newman said: "There has never been a better time to invest in Croydon and support our ambitions for growth.

 "Croydon is a modern European city on the cusp of a massive, once-in-a-lifetime regeneration opportunity, bringing with it multi-billion pound investment, and thousands of new homes and jobs – which we are ready and able to deliver. 

"Central government and the Mayor of London know that cities like Croydon hold the future to the economic regeneration of the entire region, and that’s why we’re asking them to help us to reach our fantastic potential."

The council says tax powers focussed on a ring-fenced town-centre "growth zone" would help funnel £5.25bn into the local economy by 2031, creating 8,300 new homes and 23,600 new jobs.

It predicts the stamp duty scheme would raise £100m in the next two decades and the ability to retain increases to business rates would generate £30m a year by 2031. 

Coun Newman said: "Everything is aligned and ready to happen right now; and by giving us the powers to make our own decisions, and to raise our own funds and reinvest them locally will not only kick start our delivery programme but help us unlock that potential and deliver our vision." 

Labour and Conservative MPs have backed the plans, while Mayor of London Boris Johnson is to join the council in lobbying the Government for devolution. 

Gavin Barwell, Croydon Central MP, said: "Croydon is one of the best places in the country to live. Our reputation as a dynamic, exciting place to live and work is attracting an unprecedented number of developers and businesses to our borough.

"Croydon has the potential to unlock huge economic regeneration in London and the south east, and I’ll continue to do everything I can to help make it happen." 

Steve Reed, MP for Croydon North said Croydon represented "an Olympic scale opportunity for London".

He added: "Croydon can deliver a scheme at the scale of a new garden city in around half the time, and the council is committed to ensuring that this growth delivers benefits for all those that live, work and invest in Croydon."