Croydon Council is to increase council tax in the borough by 1.85 per cent.

There have been no increases in council tax for the last two years.

Residents will pay an extra 34p a week- £17.64 a year - to add £1.3m to the council's budget.

The money raised will go towards the creation of new school places and tackling homelessness.

Council leader Councillor Mike Fisher said the council tax rise was "the right thing to do" to protect frontline services.

He said: "Every year it is a balancing act between making sure that council tax is affordable for the public, taking into account various offers that are on the table from the government, and obviously protecting frontline services.

"We've considered very carefully from central government but on this occasion we have decided the right thing to do to protect frontline services is actually to have a modest increase in council tax.

"I think to protect investment in schools, school improvement and a whole range of council services that is an investment that most local taxpayers will be prepared to fund."

Any tax rise over two per cent would have triggered a local referendum.