Chancellor George Osborne has promised to "discuss" proposals to give Croydon devolved powers to raise revenue but stopped short of making a firm commitment.

In his autumn statement published this afternoon, the MP said he would consider the creation of a new "growth zone" in Croydon "subject to value for money". 

Croydon Council, backed by MPs Gavin Barwell and Steve Reed, have been lobbying the Government for devolved powers to enable it to collect taxes on developments within the town centre.

They say a stamp duty pilot that would funnel tax on new homes to the council's coffers and increased income from business rates would generate £5.25bn for the borough's economy.

Mr Osborne, in the final autumn statement of the current Parliament, said: "The government will discuss plans for a Growth Zone with the London Borough of Croydon, which will be subject to value for money."

Croydon Council is delighted about the news from the Chancellor.

Council leader Councillor Tony Newman said: "This is fantastic news for Croydon residents. 

“We’re delighted the Chancellor has announced that the government will work with the council to create a growth zone in Croydon, which will bring huge benefits to our residents and transform Croydon into a modern, European city.

“For Croydon to be named in the autumn statement shows the huge importance of Croydon and the significance that it holds to London and the wider region.”

Writing in yesterday's Evening Standard, the chancellor said he was "working with local MP Gavin Barwell on a plan for a Growth Zone to boost homes and jobs".